What are the tax liability, the marginal tax rate, and the average tax rate for

Question

What are the tax liability, the marginal tax rate, and the average tax rate for a corporation with $150,500 taxable income? (Round "Average tax rate" to 2 decimal places.)

What are the tax liability, the marginal tax rate, and the average tax rate for a corporation with $17,500,000 taxable income? (Round "Average tax rate" to 2 decimal places.)

Tax liability$6,100,000

Marginal tax rate38%

Tax liability $41,945 Marginal tax rate 39 % Average tax rate % 2016Income Tax Rates INDIVIDUAL TAX RATE SCHEDULES Married Filing Jointly and Surviving Spouse If taxable income is: The tax IS: Not over $18,550 Over $18,550 but not over $75,300 Over $75,300 but not over $151,900 Over $151,900 but not over $231,450 Over $231,450 but not over $413,350 Over $413,350 but not over $466,950 Over $466,950 10% of taxable income $1 ,855.00 1 5% of excess over $18,550 $10,367.50 25% of excess over $75,300 $29,517.50 + 28% of excess over $151,900 $51 ,791 .50 + 33% of excess over $231 ,450 $11 1,818.50 35% of excess over $413,350 $130,578.50 + 39.6% of excess over $466,950 Married Filing Separately If taxable income is: The tax is: Not over $9,275 Over $9,275 but not over $37,650 Over $37,650 but not over $75,950 Over $75,950 but not over $115,725 Over $115,725 but not over $206,675 Over $206,675 but not over $233,475 Over $233,475 10% of taxable income $927.50 + 15% of excess over $9,275 $5,183.75 25% of excess over $37,650 $14,758.75 + 28% of excess over $75,950 $25,895.75 + 33% of excess over $11 5,725 $55,909.25 + 35% of excess over $206,675 $65,289.25 + 39.6% of excess over $233,475 Heads of Household If taxable income is: The tax is: Not over $13,250 Over $13,250 but not over $50,400 Over $50,400 but not over $130,150 Over $130,150 but not over $210,800 Over $210,800 but not over $413,350 Over $413,350 but not over $441,000 Over $441,000 10% of taxable income $1 ,325.00 + 1 5% of excess over $13,250 $6,897.50 25% of excess over $50,400 $26,835.00 + 28% of excess over $130,150 $49,417.00 + 33% of excess over $210,800 $116,258.50 + 35% of excess over $413,350 $125,936.00 + 39.6% of excess over $441,000

Explanation / Answer

Taxable income 150,500

Tax liability = 50,000 x 15% + 25,000 x 25% + 25,000 x 34% + (150,500 - 100,000) x 39%

= 41,945

Average rate = 27.87%

Taxable income = 17,500,000

Tax liability = 6,100,000

Average rate = 34.86%

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