Using the following tax rate schedule, answer the following:

a. Find the marginal tax rate for the following level of corporate earnings before tax: (i) $25,000; and (ii) $500,000

b. For each of the above cases, how much would the companys after tax earnings be?

Corporate Tax Rate Schedule Range of taxable income Base tax rate (Marginal rate x amount over base braket) 0 to 50,000 to 75,000 to 100,000 to 335,000to 10,000,000 to 15,000,000 to 50,000 75,000 100,000 335,000 10,000,000 15,000,000 18,333,333 0 + 7500 + 13750 + 22250 + 113900 + 3400000 + 5150000 + 6416667 + (15% x amount over $0) (25% x amount over $50,000) (34% x amount over $75,000) (39% x amount over $100,000) (34% x amount over $335,000) (35% x amount over $10,000,000) (3896 x amount over $15,000,000) (35% x amount over $18,333,333) 18,333,333 and up