Taxable income Tax Rate
10,000,001-15,000,000 35
Suppose a firm earns $12,000,000 in taxable income. Which of the following is correct about the firm’s marginal and average tax rates?
Select one:
a. The average tax rate is 34.17% and the marginal tax rate is 35%
b. The average tax rate is 29.67% and the marginal tax rate is 34%
c. The average tax rate is 29.67% and the marginal tax rate is 34.17%
d. The average tax rate is 35% and the marginal tax rate is 34%
e. The average tax rate is 35% and the marginal tax rate is 35%