What are the average and marginal tax rates for a corporation that has $97,648 of taxable income? The tax rates are as follows: $$\begin{array} { | c | c | }
\hline \text { Corporate Taxable Income (S) } & \text { Tax Rate (") ) } \
\hline 0 - 50,000 & 15 \
\hline 50,001 - 75,000 & 25 \
\hline 75,001 - 100,000 & 34 \
\hline
\end{array}$$

Question

What are the average and marginal tax rates for a corporation that has $97,648 of taxable income? The tax rates are as follows: $$\begin{array} { | c | c | } 
\hline \text { Corporate Taxable Income (S) } & \text { Tax Rate (") ) } \
\hline 0 - 50,000 & 15 \
\hline 50,001 - 75,000 & 25 \
\hline 75,001 - 100,000 & 34 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The average tax rate is calculated by dividing the total tax paid by the total income. The marginal tax rate is the rate paid on the last dollar earned, which for this income level is 34%.

What Are the Average and Marginal Tax Rates for a Corporation