QUESTION 3:

Problem 2-7 Corporate Tax Liability To complete the assignments listed below, refer to the Table 2-1. The Talley Corporation had a taxable income of $345,000 from operations after all operating costs but before (1) interest charges of $34,500, (2) dividends received of $17,250, (3) dividends paid of $13,800, and (4) income taxes. what are the rm's income tax liability and its after-tax income? Round your answers to two decimal places. Income tax liability $ 8 After-tax income $ 0 What are the company's marginal and average tax rates on taxable income? Round your answers to two decimal places. Marginal tax rate E0 % Average tax rate 34 g % TABLE 2-1 Corporate Tax Rates as of January 2012 If a Corporation's Taxable It Pays This Amount on Plus This Percentage on Average Tax Rate at Income Is the Base of the Bracket the Excess Over the Base Top of Bracket Up to $50,000 15% 15.0% $50,000-$75,000 $7,500 25 18.3 $75,000-$100,000 $13,750 34 22.3 $100,000-$335,000 $22,250 39 34.0 $335,000-$10,000,000 $1 13,900 34 34.0 $10,000,000-$15,000,000 $3,400,000 35 34.3 $15,000,000-$18,333,333 $5,150,000 38 35.0 Over $18,333,333 $6,416,667 35 35.0