What Are the Average and Marginal Tax Rates for a Corporation

question 58

Multiple Choice

What are the average and marginal tax rates for a corporation that has $97,648 of taxable income? The tax rates are as follows: $$\begin{array} { | c | c | } \hline \text { Corporate Taxable Income (S) } & \text { Tax Rate (") ) } \\\hline 0 - 50,000 & 15 \\\hline 50,001 - 75,000 & 25 \\\hline 75,001 - 100,000 & 34 \\\hline\end{array}$$

• A)21.97%; 25%
• B)21.97%; 34%
• C)23.08%; 34%
• D)34%; 34%

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Definitions:

Resale Value

The expected amount that an item or asset can be sold for at a future date, taking into account depreciation and market demand.

Sum-Of-The-Years-Digits

An accelerated method of depreciation which calculates annual depreciation by multiplying an asset's cost by a fraction that decreases year by year.

Scrap Value

The estimated residual value of an asset after it has reached the end of its useful life.

Transmitter

A device that sends signals, such as radio waves, from one location to another, typically used in communication systems.