Suppose that in addition to $17.85 million of taxable income, Texas Taco, Inc., received $1,105,000...
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Suppose that in addition to $17.85 million of taxable income, Texas Taco, Inc., received $1,105,000 of interest on state-issued bonds and $760,000 of dividends on common stock it owns in Arizona Taco, Inc. (Use corporate tax rate of 21 percent for your calculations.) a. Calculate Texas Taco's income tax liability. (Enter your answer in dollars not in millions.) Income tax liability b. What are Texas Taco's average and marginal tax rates on taxable income? Average tax rate Marginal tax rate %
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