Problem
1. Martin Corporation had net operating income of $40,000. It also had $20,000 of interest expense and $35,000 of interest income during 2000.
A. How much income tax must the corporation pay?
B. What is the marginal tax rate?
C. What is the average tax rate?
2. The Green Corporation had net income from operations of $130,000 in 2000, including $30,000 in dividend income on small holdings of stocks of various major publicly held corporations.
A. How much tax must the corporation pay?
B. What is the average tax rate?
C. What is the marginal tax rate?