The Dakota Corporation had a 2015 taxable income of $31,500,000 from operations after all operating costs but before (1) interest charges of $8,400,000; (2) dividends received of $740,000; (3) dividends paid of $5,200,000; and (4) income taxes.
a. Use the tax schedule in Table 2.3 to calculate Dakota’s income tax liability. (Round your answer to the nearest dollar amount.)
Income tax liability $
b. What are Dakota’s average and marginal tax rates on taxable income? (Round your answers to the nearest whole percent.)
Average tax rate %
Marginal tax rate %