Exercise Score: 0 of 1 pt Assignment Score: 0% (0 of 8 pts) 0 of 8 complete Marg

Question

Exercise Score: 0 of 1 pt Assignment Score: 0% (0 of 8 pts) 0 of 8 complete Marginal corporate tax rates Using the corporate tax rate schedule given here 2, perform the following: a. Find the marginal tax rate for the following levels of corporate earnings before taxes: $15,900; $60,200; $89,300; $197,000, $405,000; $1.4 million; and $20.2 million. b. Plot the marginal tax rates (measured on the y axis against the pretax income levels (measured on thexaxis). Explain the relationship between these variables. More info Corporate Tax Rate Schedule Tax calculation Range of taxable income Base tax Marginal rate x amount over base bracket) $0 to $50,000 $0) $0 (15% x amount over 75,000 7,500 (25% x amount over 50,000 to 50,000) 75,000 to 75,000) 100,000 13,750 34% x amount over 335,000 100,000 to 100,000) 22,250 39% x amount over 335,000) 335,000 to 10,000,000 113,900 34% x amount over 10,000,000 to 15,000,000 3,400,000 (35% x amount over 10,000,000) 15,000,000 to 18,333,333 15,000,000) 5,150,000 38% x amount over Over 18,333,333 18,333,333) 6,416,667 (35% x amount over Print Done

Explanation / Answer

Answer:a Corporate earnings before tax:

1.15900

Marginal Tax=15900*15%=$2385

2.60200

Marginal tax=50000*15%+10200(60200-50000)*25%=$10050

3.89300

Marginal tax=50000*15%+25000(75000-50000)*25%+14300(89300-75000)*34%=$18612

4.197000

Marginal tax=50000*15%+25000(75000-50000)*25%+25000(100000-75000)*34%+97000(197000-100000)*39%=$60080

5.405000

Marginal tax=50000*15%+25000(75000-50000)*25%+25000(100000-75000)*34%+235000(335000-100000)*39%+70000(405000-335000)*34%=$137700

6.1400000

Marginal tax=50000*15%+25000(75000-50000)*25%+25000(100000-75000)*34%+235000(335000-100000)*39%+1065000(1400000-335000)*34%=$476000

6.20200000

Marginal tax=50000*15%+25000(75000-50000)*25%+25000(100000-75000)*34%+235000(335000-100000)*39%+9665000(10,000,000-335000)*34%+5000000(15000000-10,000,000)*35%+3333333(18333333-15000000)*38%+1866667(20200000-18333333)*35%)=$7070000.45

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