Using the following Corporate Marginal Tax Rate schedule to answer questions.

Corporate Marginal Tax Rate as of December 2014.

Earnings Before Taxes	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%

Trask Industries earning before tax (EBT) is $3,200,000. Stark Industries has earnings before taxes of $150,000. Calculate the marginal tax rate, tax obligation and effective tax rate and fill in the following table for Trask Industries and Stark Industries, respectively?

	Trask Industries	Stark Industries
EBT	$3,200,000	$150,000
Marginal Tax Rate
Tax Obligation
Effective Tax Rate

Part 2

Fill in the missing values in the following income statement. Calculate the Net Income for Companies A and B.

	Company A	Company B
Sales		250,000
COGS	200,000
Gross Profit		150,000
Operating Expenses	60,000	60,000
Operating Income (EBIT)
Interest Expense	10,000
Income before Taxes (EBT)		80,000
Tax Expense (40%)	92,000
Net Income