Please need help with this financial accounting question Ocean View Enterprises has a marginal tax rate of 30percent and an average tax rate of 25 percent. If the firmearns $95,000 in taxable income, how much will it owe intaxes?

Step 1: Definition of Tax ExpenseTax expense represents the total amount a company owes in taxes…

Answered: Ocean View Enterprises has a marginal…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 7P

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Ocean View Enterprises has a marginal tax rate of 30 percent and an average tax rate of 25 percent. If the firm earns $95,000 in taxable income, how much will it owe in taxes?