Question

(regardless of the chart year difference, this was the info that was given to me, so the chart is made for the problem)

Help Hunt Taxidermy, Inc. is concerned about the taxes paid by the company in 2018. In addition to $12.6 million of taxable income, the firm received $1,255,000 of interest on state-issued bonds and $740,000 of dividends on common stock it owns in Oakdale Fashions, Inc. (Use Table 2.3.) Calculate Hunt Taxidermy's tax liability. (Enter your answer in dollars not in millions. Round your answer to the nearest dollar amount.) Tax liability Calculate Hunt Taxidermy's average tax rate. (Round your answer to 2 decimal places.) Average tax rate Calculate Hunt Taxidermy's marginal tax rate. Marginal tax rate < Prey 3 of 7 Next >

Answer 1

Taxable Income	$ 12,600,000
Taxable Dividend Income	$      222,000
740000*30%
Total Taxable Income	$ 12,822,000
Tax liability	$   6,697,700
3400000+(12822000-3400000)*35%
Average tax rate	52.24%
6697700/12822000
Marginal tax rate	35.00%