What Are the Average and Marginal Tax Rates for a Corporation

question 97

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:

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

---

Definitions:

Trial Balance

A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check the balance of a company's accounting system.

Prepaid Insurance

An expense paid in advance for insurance coverage, recorded as a current asset on the balance sheet until the coverage period elapses.

Posting Reference

A code or number used in ledger accounts that links journal entries to the specific accounts affected, facilitating traceability and audit processes.

Journal

A journal in accounting refers to a detailed record of all the financial transactions of a business, showing the debits and credits for each transaction.