Over
But not Over
Tax is:
Of amount over:
$0
$50,000
15%
$0
$50,000
$75,000
$7,500+25%
$50,000
$75,000
$100,000
$13,750+34%
$335,000
$100,000
$335,000
$22,250+39%
$100,000
$335,000
$10,000,000
$113,900+34%
$335,000
$10,000,000
$15,000,000
$3,400,000+35%
$10,000,000
$15,000,000
$18,333,333
$5,150,000+38%
$15,000,000
$18,333,333
_
$35%
$
Refer to the table above: A firm has $677360.4 in taxable income. What is the firm's
a. Average Tax Rate = 20.24 %
b. Average Tax Rate = 35 %
c. Average Tax Rate = 536.95 %
d. Average Tax Rate = -481.71 %