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The Robbins Corporation is an oil wholesaler. The firm's sales last year were $ 1 . 0 4 million, with the cost of goods sold
The Robbins Corporation is an oil wholesaler. The firm's sales last year were
Data Table 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% Print Done $1.04
million, with the cost of goods sold equal to $610,000.
The firm paid interest of $223,250
and its cash operating expenses were $103,000.
Also, the firm received $41,000
in dividend income from a firm in which the firm owned 22%
of the shares, while paying only $10,000
in dividends to its stockholders. Depreciation expense was $52,000.
Use the corporate tax rates shown in the popup window, to compute the firm's tax liability. What are the firm's average and marginal tax rates?
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