Question: Average corporate tax rates.sing the corporate tax rate schedule given in Table 2.1, perform the following:
A. Calculate the tax liability, after tax earnings, and average tax rates for the following levels of corporate earnings before taxes: $10,000; $80,000;$300,000; $500,000;$1.5 million; $10 million; and $20 million.
B. Plot the average tax rates ( measured on the y axis) against the pretax income levels (measured on the x axis). What generalization can be made concerning the relationship between the variables?