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Sales for J. P. Hulett Inc. during the past year amounted to $4.3 million. Gross profits totaled $1.02 million, and operating and depreciation expenses were

Sales for J. P. Hulett Inc. during the past year amounted to $4.3 million. Gross profits totaled $1.02 million, and operating and depreciation expenses were $507,000 and $346,000 , respectively. Dividend income for the year was $12,000 , which was paid by a firm in which Hulett owns 85 percent of the shares. Use the corporate tax rates shown in the popup window, The firm's tax liability for the year is

Taxable Income

Marginal Tax Rate

$0$50,000

15%

$50,001$75,000

25%

$75,001$100,000

34%

$100,001$335,000

39%

$335,001$10,000,000

34%

$10,000,001$15,000,000

35%

$15,000,001$18,333,333

38%

Over $18,333,333

35%

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