Corporate taxes Tantor Supply, Inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods. During 2017, the firm earned $92,500 before taxes.

a. Calculate the firm’s tax liability using the corporate tax rate schedule given in Table 1.2.
b. How much are Tantor Supply’s 2017 after-tax earnings?
c. What was the firm’s average tax rate, based on your findings in part a?
d. What was the firm’s marginal tax rate, based on your findings in part a?

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TABLE 1.2 Corporate Tax Rate Schedule Tax calculation (Marginal rate X amount over bracket lower limit) Base tax Taxable income brackets 50,000 (15% × amount over 0) to 50,000 75,000 2$ 7,500 (25% x amount over 50,000) to 13,750 75,000 100,000 (34% X amount over 75,000) to $ 22,250 $ 113,900 (39% X amount over $ 100,000 335,000 100,000) to (34% X amount over 335,000 10,000,000 335,000) to 15,000,000 $3,400,000 $10,000,000) 10,000,000 (35% X amount over to 18,333,333 $5,150,000 $15,000,000) 15,000,000 (38% X amount over to Over 18,333,333 $18,333,333) $6,416,667 (35% X amount over