The Ohio Corporation had a 20XX taxable income of $50,000,000 from operations after all operating costs but before

interest charges of $500,000,

dividends received of $45,000,

dividends paid of $10,000,000, and

income taxes.

Using the tax schedule in Table 2.3, what is Ohio's income tax liability? What are Ohio's average and marginal tax rates on taxable income from operations?

Multiple Choice

A) $17,329,725, 34.66%, 35%, respectively

B) $6,416,667, 12.83%, 35%, respectively

C) $13,829,725, 27.66%, 35%, respectively

D) $17,340,750, 34.68%, 35%, respectively

Table 2.3

Corporate Tax Rates as of 20XX

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