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Windham Inc. is preparing tax filings for 2019. Assume the following tax table is applicable: Tax on Base Percentage on Taxable Income of Bracket Excess

Windham Inc. is preparing tax filings for 2019. Assume the following tax table is applicable:

Tax on Base

Percentage on

Taxable Income

of Bracket

Excess above Base

Up to $50,000

$ 0

15%

$50,000$75,000

7,500

25

$75,000$100,000

13,750

34

$100,000$335,000

22,250

39

$335,000$10,000,000

123,900

34

$10,000,000$15,000,000

3,400,000

35

$15,000,000$18,333,333

5,150,000

38

Over $18,333,333

6,416,667

35

The income statement shows that the taxable income is $290,500 in 2019.

a. What is Windham Inc. tax liability? (10 points) (Do not round intermediate calculations. Round your answer to the nearest dollar and DO NOT USE COMMA in your answer. E.g., $16666.6 should be rounded to $16667.)

Tax liability = $ (Note: Do not use comma in your answer)

b. What is the firms average tax rate? (10 points) (Do not round intermediate calculations. Round your answer to TWO decimal places. E.g., 0.6666% should be rounded to 0.67%.)

Average tax rate = %

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