CALCULATION OF MARGINAL AND AVERAGE TAX RATES (2 Questions)
Using the tax table below, the tax liability of a corporation with ordinary income of $105,000 is
Range of taxable income
Marginal rate
$0 to $50,000
15%
50,000 to 75,000
25
75,000 to 100,000
34
100,000 to 335,000
39
335,000 to 10,000,000
34
10,000,000 to 15,000,000
35
15,000,000 to 18,333,333
38
Over 18,333,333
35
A. $42,000
B. $35,700
C. $23,950
D. $24,200