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Refer to the corporate marginal tax rate information in Table 2.3 .    b-1 Compute the average tax rate for a corporation with exactly $335,001 in taxable income.      Average tax rate  %     b-2 What is the average tax rate for a corporation with exactly $18,333,334?      Average tax rate  %     c. The 39 percent and 38 percent tax rates both represent what is called a tax “bubble.” Suppose the government wanted to lower the upper threshold of the 39 percent marginal tax bracket from $335,000 to $216,000. What would the new 39 percent bubble rate have to be? (Round your answer to 2 decimal places. (e.g., 32.16))      Bubble rate  %

Refer to the corporate marginal tax rate information in Table 2.3 .    b-1 Compute the average tax rate for a corporation with exactly $335,001 in taxable income.      Average tax rate  %     b-2 What is the average tax rate for a corporation with exactly $18,333,334?      Average tax rate  %     c. The 39 percent and 38 percent tax rates both represent what is called a tax “bubble.” Suppose the government wanted to lower the upper threshold of the 39 percent marginal tax bracket from $335,000 to $216,000. What would the new 39 percent bubble rate have to be? (Round your answer to 2 decimal places. (e.g., 32.16))      Bubble rate  %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Refer to the corporate marginal tax rate information in Table 2.3 .
  
b-1

Compute the average tax rate for a corporation with exactly $335,001 in taxable income.
  
  Average tax rate  %  
  
b-2

What is the average tax rate for a corporation with exactly $18,333,334?
  
  Average tax rate  %  
  
c.

The 39 percent and 38 percent tax rates both represent what is called a tax “bubble.” Suppose the government wanted to lower the upper threshold of the 39 percent marginal tax bracket from $335,000 to $216,000. What would the new 39 percent bubble rate have to be? (Round your answer to 2 decimal places. (e.g., 32.16))
  
  Bubble rate  %  
 
 
 
 
 
Taxable Income Tax Rate 2$ 0- 50,000 15% 50,001- 75,000 25 75,001- 100,000 34 100,001- 335,000 39 335,001–10,000,000 34 10,000,001–15,000,000 35 15,000,001–18,333,333 38 18,333,334+ 35
Transcribed Image Text:Taxable Income Tax Rate 2$ 0- 50,000 15% 50,001- 75,000 25 75,001- 100,000 34 100,001- 335,000 39 335,001–10,000,000 34 10,000,001–15,000,000 35 15,000,001–18,333,333 38 18,333,334+ 35
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