Using the corporate tax rate schedule given in Table, perform the following: a. Calculate the tax liability,
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Using the corporate tax rate schedule given in Table, perform the following:
a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of corporate earnings before taxes: $10,000; $80,000; $300,000; $500,000; $15 million; $10 million; and S20 million.
b. Plot the average tax rates (measured on the y axis) against the pretax income levels (measured on the x axis). What generalization can be made concerning the relationship between thesevariables?
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Related Book For
Principles of managerial finance
ISBN: 978-0132479547
12th edition
Authors: Lawrence J Gitman, Chad J Zutter
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