Problem: Corporate taxes Tantor Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods.
CORPORATE TAX RATE SCHEDULE
$0 - $30,000 15%
$30,000 - $50,000 25%
$50,000 - $75,000 34%
$75,000 - $100,000 39%
Over $100,000 34%
Tantor Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods. During 2010 the firm earned $92,500 before taxes.
Question 1: Calculate the firm's tax liability using the corporate tax rate schedule given in
Question 2: How much are Tantor Supply's 2010 after-tax earnings?
Question 3: What was the firm's average tax rate, based on your findings in part a?
Question 4: What is the firm's marginal tax rate, based on your findings in part a?