Your company generated $3.7 million revenue in 2013. Annual costs/depreciation are as follows: cost of goods sold that year was $800,000; salaries and wages that were paid were $1,000,000; advertising costs were $30,000; depreciation was $50,000; other operating expenses were $100,000; and rent was $250,000. In this case,
a) How much federal tax do you owe?
b) What is your average tax rate?
c) What is your marginal tax rate?
d) What is your net income?