Using the corporate tax rate schedule given here , perform
the following:
a. Calculate the tax liability, after-tax earnings, and
average tax rates for the following levels of corporate earnings before taxes:
$ 7 comma 500$7,500; $ 80 comma 000$80,000; $ 298 comma 000$298,000; $ 496
comma 000$496,000; $ 1.6$1.6 million; $ 9.4$9.4 million; and $ 19.6$19.6
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 these variables?
Contact Us Below To Get Tutoring
