Franklin Corporation just paid taxes of $152,000 on taxable income of $512,000. The marginal tax rate...

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Franklin Corporation just paid taxes of $152,000 on taxable income of $512,000. The marginal tax rate...

Franklin Corporation just paid taxes of $152,000 on taxable income of $512,000. The marginal tax rate is 35% for the company. What is the average tax rate for the Franklin Corporation?

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Answer 1

Answer #1

Average Tax Rate = Taxes Paid / Taxable Income

= $152,000 / $512,000 = 0.2969, or 29.69%

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Answer 2

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