Suppose that in addition to $18.05 million of taxable income, Texas Taco, Inc., received $8,300,000 of interest on state-issued bonds and $730,000 of dividends on common stock it owns in Arizona Taco, Inc.

a.	Use the tax schedule in Table 2.3 to calculate Texas Tacos income tax liability. (Enter your answer in dollars not in millions.)

b.	What are Texas Tacos average and marginal tax rates on taxable income? (Round your answers to 2 decimal places.)

table 2.3 Corporate Tax Rates as of 2015 Pay this Amount on Base Income Plus this Percentage on Anything Over the Base Taxable Income $0-$50,000 $50,001-$75,000 $75,001-$100,000 $100,001-$335,000 $335,001-$10,000,000 $10,000,001-$15,000,000 $15,000,001-$18,333,333 Over $18,333,333 0 7,500 13,750 22,250 113,900 3,400,000 5,150,000 6,416,667 15% 25 34 39 34 35 38 35