1. Let's say the business earns $50,000 in revenue this year. The business pays a 10% tax on its first $10,000 of income, a 12% tax on income over $10,000 but below $40,000, and a 22% tax on income over $40,000. Your marginal tax rate is

- (Show all your calculations and formula if applicable).

2. Jennings, Inc. has a tax liability of $170,000 on pre-tax income of $500,000. What is the average tax rate for Jennings, Inc.? (Show all your calculations and formula if applicable).

Answer rating: 100% (QA)

1 To calculate the marginal tax rate for the business we need to determine the tax paid on the next ... View the full answer