The Robbins Corporation is an oil wholesaler. The firm’s sales last year were $1 million, with the cost of goods sold equal to $600,000. The firm paid interest of $200,000 and its cash operating expenses were $100,000. Also, the firm received $40,000 in dividend income from a firm in which the firm owned 22 percent of the shares, while paying only $10,000 in dividends to its stockholders. Depreciation expense was $50,000. Compute the firm’s tax liability. Based on your answer, does management need to take any additional action? What are the firm’s average and marginal tax rates?