The tax liability of a corporation with ordinary income of $105,000 is Range of taxable income Marginal rate 15% 25 0 to $ 50,000 50,000 to 75,000 75,000 to 100,000 100,000 to 335,000 335,000 to 10,000,000 10,000,000 to 15,000,000 34 39 34 35 Following is the balance sheet of XYZ Company. Because XYZ has $900,000 of retained earnings, do you think that the company would be able to pay cash to buy an asset with a cost of $525,000? Why or why not? Give logical arguments to support your answer. Cash Inventory Account's receivable Total CA Net fixed assets $ 50,000 Accounts payable 300,000 Accruals 250,000 Total CL $ 600,000 Debt $ 900,000 Common stock Retained earnings $1,500,000 Total L & E $ 100,000 100,000 $ 200,000 200,000 200,000 900,000 $1,500,000 Total assets