Question

Taxable income Tax Rate

10,000,001-15,000,000 35

Suppose a firm earns $12,000,000 in taxable income. Which of the following is correct about the firm’s marginal and average tax rates?

Select one:

a. The average tax rate is 34.17% and the marginal tax rate is 35%

b. The average tax rate is 29.67% and the marginal tax rate is 34%

c. The average tax rate is 29.67% and the marginal tax rate is 34.17%

d. The average tax rate is 35% and the marginal tax rate is 34%

e. The average tax rate is 35% and the marginal tax rate is 35%