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Last year Sanderson, Inc. had sales of
$3.4
million. The firm's cost of goods sold came to
$2.3
million, its operating expenses excluding depreciation of
$101,000
were
$392,000,
and the firm paid
$153,000
in interest on its bank loans. Also, the corporation received
$55,000
in dividend income (from a company in which it owned less than
20
percent of its shares) but paid
$21,000
in the form of dividends to its own common stockholders. Use the corporate tax rates shown in the popup window,
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, to calculate the corporation's tax liability. What are the firm's average and marginal tax rates?
| Taxable Income | Marginal Tax Rate |
| $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% |
| Over $18,333,333 | 35% |
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