Tantor Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods. During 2010 the firm earned $92,500 before taxes.

a. Calculate the firm?s tax liability using the corporate tax rate schedule given in Table 2.1.

b. How much are Tantor Supply?s 2010 after-tax earnings?

c. What was the firm?s average tax rate, based on your findings in part a?

d. What is the firm?s marginal tax rate, based on your findings in part a?

Table 2.1

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Tax calculation Range of taxable income Base tax + (Marginal rate X amount over base bracket) $ 0 to $ 50,000 2$ (15% amount over $ 0) 50,000 to 75,000 7,500 + (25 amount over 50,000) 75,000 to 100,000 13,750 (34 amount over 75,000) 100,000 to 335,000 22,250 (39 amount over 100,000) 335,000 to 10,000,000 113,900 + (34 amount over 335,000) 10,000,000 to 15,000,000 3,400,000 (35 amount over 10,000,000) 15,000,000 to 18,333,333 5,150,000 + (38 amount over 15,000,000) Over 18,333,333 6,416,667 + (35 amount over 18,333,333)