2.

Please answer both parts A & B

a.

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b.

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(Corporate income tax) Sales for J. P. Hulett Inc. during the past year amounted to $4.2 million. Gross profits totaled $1.01 million, and operating and depreciation expenses were $501,000 and $347,000, respectively. Dividend income for the year was $14,000, which was paid by a firm in which Hulett owns 85 percent of the shares. Use the corporate tax rates shown in the popup window, to Comcute the corporation's tax liability. What are the firm's average and marginal tax rates? The firm's tax liability for the year is $ (Round to the nearest dollar.) The firm's average tax rate is The firm's marginal tax rate is \%. (Round to two decimal places.) \%. (Round to the nearest integer.) \begin{tabular}{l|l} Taxable Income & \multicolumn{2}{l}{ Marginal Tax Rate } \\ $$50,000 & 15% \\ \hline$50,001$75,000 & 25% \\ \hline$75,001$100,000 & 34% \\ \hline$100,001$335,000 & 39% \\ \hline$335,001$10,000,000 & 34% \\ \hline$10,000,001$15,000,000 & 35% \\ \hline$15,000,001$18,333,333 & 38% \\ \hline Over $18,333,333 & 35% \end{tabular} (Corporate income tax) G. R. Edwin Inc. had sales of $5.84 million during the past year. The cost of goods sold amounted to $2.9 million. Operating expenses totaled $2.43 million, and interest expense was $29,000. Use the corporate tax rates shown in the popup window, to determine the firm's tax liability. What are the firm's average and marginal tax rates? The firm's tax liability for the year is (Round to the nearest dollar.) The firm's average tax rate is \%. (Round to two decimal places.) The firm's marginal tax rate is \%. (Round to the nearest integer.) \begin{tabular}{l|l} Taxable Income & Marginal Tax Rate \\ $0$50,000 & 15% \\ \hline$50,001$75,000 & 25% \\ \hline$75,001$100,000 & 34% \\ \hline$100,001$335,000 & 39% \\ \hline$335,001$10,000,000 & 34% \\ \hline$10,000,001$15,000,000 & 35% \\ \hline$15,000,001$18,333,333 & 38% \\ \hline Over $18,333,333 & 35% \\ \hline \end{tabular}