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Zapple Inc. is concerned about the taxes paid by the company in 2018. The firm received $4 million in earnings from operations, paid $100,000 in

Zapple Inc. is concerned about the taxes paid by the company in 2018. The firm received $4 million in earnings from operations, paid $100,000 in interest payments, received $150,000 of interest income, and finally $300,000 in dividend income. What is Zapple's tax liability, average tax rate, and marginal tax rate, respectively using the table given below?

Taxable Income Tax on Base of Bracket Percentage on Excess above Base
$0-$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-$10,000,000 113,900 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

$1,637,100, 32%, 34%

$1,293,700, 34%, 34%

$1,407,600, 34%, 34%

$1,475,600, 34%, 34%

None of the above

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