Average corporate tax rates. Using the corporate tax rate schedule given below. Perform the? following:
a. Calculate the tax? liability, after-tax? earnings, and average tax rates for the following levels of corporate earnings before? taxes: $7,600?;$78,000?;$300,000?;$500,000?;$1.5 million;$9.5 million; and $20.3 million.
b. Plot the average tax rates? (measured on the y? axis) against the pretax income levels? (measured on the x? axis). What generalization can be made concerning the relationship between these? variables?
a. Find the marginal tax rate for the following levels of corporate earnings before? taxes:$7,600?;$78,000?;$300,000?;$500,000?;$1,500,000?;$9.5 ?million; and $20.3 million.