Southern Textile Ltd. is a manufacturer of sportswear that supplies to a number of European retail stores. Its registered office is in Singapore. During 2017, the firm earned SGD 112,000 before taxes. Singapore’s corporate tax rate is 20%. Firms are eligible for a tax rebate of 50% of the tax amount, capped to a maximum amount of SGD 10,000 every year on their tax liability.

a. Calculate the firm’s tax liability using Singapore’s corporate tax rates.

b. How much are Southern Textile’s 2017 after-tax earnings?

c. Calculate the firm’s average tax rate.