Problem:
Corporate Taxes Scuba, Inc. is concerned about the taxes paid by the company in 2008. In addition to $5 million of taxable income, the firm received $80,000 of interest on state-issued bonds and $500,000 of dividends on common stock it owns in Boating Adventures, Inc.
Required:
Question: What is Scuba's tax liability, average tax rate, and marginal tax rate, respectively?
- $1,637,100, 31.788%, 34%
- $1,751,000, 34%, 34%
- $1,983,900, 36.07%, 34%
- $1,870,000, 34%, 34%
tax liability-average tax rate-marginal tax rate