Use the partial table for corporate federal income taxes to answer the following
ID: 2638393 • Letter: U
Question
Use the partial table for corporate federal income taxes to answer the following questions.
Table: Corporate Marginal Income Tax Rates
1) A corporation has a taxable income of $10 million, what is the average percentage tax rate?
34.00%; 39.00%; 31.05%, 33.08%, or 34.25%
2) A corporation has a taxable income of $70,000, what is the percentage marginal tax rate?
15.00%; 25.00%; 34.00%; 39.00%; or 34.25%
Notice: I got 34.00% for the first question & 25.00% for the second one. Is this correct? - Thank you!
Taxable Income Over $ But Under $ Marginal Tax Rate N/A 50,000 15% 50,001 75,000 25% 75,001 100,000 34% 100,001 335,000 39% 335,001 10,000,000 34%Explanation / Answer
1 Taxable income Over $ But Under $ Marginal Tax Rate Taxable income $10,000,000 Tax (Taxable Income * Tax Rate) N/A 50,000 15% 50,000 7,500 50,001 75,000 25% 24,999 6,250 75,001 100,000 34% 24,999 8,500 100,001 335,000 39% 234,999 91,650 335,001 10,000,000 34% 9,665,003 3,286,101 Total 10,000,000 3,400,000 Average Tax Percentage 34% 2 Taxable income Over $ But Under $ Marginal Tax Rate Taxable income $10,000,000 Tax (Taxable Income * Tax Rate) N/A 50,000 15% 50,000 7,500 50,001 75,000 25% 20,000 5,000 Total 70,000 12,500 Average Tax Percentage 18%
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