Question
Sales for J. P. Hulett Inc. during the past year amounted to $ 3.8 $3.8 million. Gross profits totaled $ 1.07 $1.07 million, and operating
Sales for J. P. Hulett Inc. during the past year amounted to $ 3.8
$3.8 million. Gross profits totaled $ 1.07
$1.07 million, and operating and depreciation expenses were $ 502 comma 000
$502,000 and $ 348 comma 000
$348,000, respectively. Dividend income for the year was $ 11 comma 000
$11,000, which was paid by a firm in which Hulett owns 85
85 percent of the shares. Use the corporate tax rates shown in the popupwindow, LOADING...
, to Comcute thecorporation's tax liability. What are thefirm's average and marginal taxrates?
Thefirm's tax liability for the year is $
nothing
. (Round to the nearestdollar.)
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