Compute the Total Tax Liability,the Average Tax Rate,and the Marginal

question 7

Essay

Compute the total tax liability,the average tax rate,and the marginal tax rate for the following corporation: $1,000,000 in taxable income; 15% tax up to $50,000,25% up to $75,000,34% up to $100,000,39% over $100,000.

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Definitions:

Objects

Material things that can be seen and touched, existing in physical reality.

Habituation

The method by which one becomes used to a stimulus through continuous exposure, resulting in a diminished reaction.

Stimulus

A stimulus is any event, object, or signal from the environment that elicits a sensory or behavioral response in an organism.

Responsiveness

The quality of reacting quickly and positively, or the degree to which a system or living organism responds to a stimulus or environment.