The Robbins Corporation is an oil wholesaler. The firm's sales last year were

$1.00

million, with the cost of goods sold equal to

$600,000.

The firm paid interest of

$200,000

and its cash operating expenses were

$100,000.

Also, the firm received

$40,000

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

$50,000.

Use the corporate tax rates shown in the popup window,

LOADING...

, to compute the firm's tax liability. What are the firm's average and marginal tax rates?

The Robbins Corporation's tax liability for the year is

$enter your response here.

(Round to the nearest dollar.)

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%

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