Sea Harbor, Inc. has a marginal tax rate of 35 percent and an average tax rate of 22 percent. If the firm earns $79,500 in taxable income, how much will it owe in taxes? a. $10,335. b. $16,695. c. $17,490. d. $27,030. e. $27,825.

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
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How much will it owe in taxes on these financial accounting question?

Sea Harbor, Inc. has a marginal tax rate of 35 percent and an average
tax rate of 22 percent. If the firm earns $79,500 in taxable income, how
much will it owe in taxes?
a. $10,335.
b. $16,695.
c. $17,490.
d. $27,030.
e. $27,825.
Transcribed Image Text:Sea Harbor, Inc. has a marginal tax rate of 35 percent and an average tax rate of 22 percent. If the firm earns $79,500 in taxable income, how much will it owe in taxes? a. $10,335. b. $16,695. c. $17,490. d. $27,030. e. $27,825.
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