You have sales of $250,000 and cost of goods sold (materials and labor) comes to $155,000. Assuming no other income or expenses:

a. what is your tax bill?

b. what is the marginal rate?

c. what is the average rate?

The problem above continues. In addition to the above, you have posted $10,000 in interest income and paid $25,000 in common stock dividends.

a. what is your new tax bill?

b. what is the new marginal rate?

c. what is the new average rate?