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Sales for J.P Hulett Inc. during the past year amounted to $4.2 million. Gross profits totaled $1.05 million, and operating and depreciation expenses were $492,000
Sales for J.P Hulett Inc. during the past year amounted to $4.2 million. Gross profits totaled $1.05 million, and operating and depreciation expenses were $492,000 and $351,000 respectively. Divident income for the year was $14,000 which was paid by a firm which Hulett owns 85% of the shares. Use the corporate tax rates shown in the popup below to compute the corporation's tax liability. What are the firm's average and marginal tax rates?
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% The firm's tax liability for the year is $| (Round to the nearest dollar.) The firm's average tax rate is %. (Round to two decimal places.) The firm's marginal tax rate is %. (Round to the nearest integer.)Step by Step Solution
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