Sales for J. P. Hulett Inc. during the past year amounted to

$4.3

million. Gross profits totaled

$1.06

million, and operating and depreciation expenses were

$493,000

and

$357,000,

respectively. Dividend income for the year was

$11,000,

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,

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%

to Comcute the corporation's tax liability. What are the firm's average and marginal tax rates?