Download the annual income statements for Sharper Image (SHRP). Looking back at Table 2.3, what is the marginal income tax rate for Sharper Image? Using the total income tax and the pretax income numbers calculate the tax rate for Sharper Image. Is this number greater than 35 percent? Why or why not?

Table 2.3

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$ Taxable income 50,000 75,000 50,001- 75,001- 100,000 100,001- 335,000 335,001-10,000,000 10,000,001-15,000,000 15,000,001-18,333,333 18,333,334+ Tax Rate 15% 25 34 39 34 35 38 35