Average versus Marginal Tax Rate: Suppose Franklin Corporation had pre-tax income of $300,000 in 2010 and that the firm would have paid $100,250.00 in federal income taxes. What is Franklin’s average income tax rate? (Round off to the nearest 0.1%) Entry field with incorrect answer
(a) 34.7% (b) 38.6% (c) 39.0% (d) 33.4%