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Sales for J. P. Hulett Inc. during the past year amounted to $3.9 million. Gross profits totaled $1.07 million, and operating and depreciation expenses were
Sales for J. P. Hulett Inc. during the past year amounted to $3.9
million. Gross profits totaled $1.07
million, and operating and depreciation expenses were $494,000
and $360,000,
respectively. Dividend income for the year was $10,000,
which was paid by a firm in which Hulett owns 85
percent of the shares.
Use the corporate tax ratesto Comcute thecorporation's tax liability. What are thefirm's average and marginal taxrates?
Taxable Income | Marginal Tax Rate | |
$0minus$50,000 | 15% | |
$50,001minus$75,000 | 25% | |
$75,001minus$100,000 | 34% | |
$100,001minus$335,000 | 39% | |
$335,001minus$10,000,000 | 34% | |
$10,000,001minus$15,000,000 | 35% | |
$15,000,001minus$18,333,333 | 38% | |
Over$18,333,333 | 35% |
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