Scuba, Inc. is concerned about the taxes paid by the company in 2018. In addition to $5 million of taxable income, the firm received $80,000 of interest on state-issued bonds and $500,000 of dividends on common stock it owns in Boating Adventures, Inc. What are Scuba's tax liability, average tax rate, and marginal tax rate, respectively?
$$\begin{array} { l c c c }
& \text { Pay this amount on } & \text { Plus this percentage on } \
\text { Taxable income } & \text { Base income } & \text { anything over the base } \
\$ 0 - \$ 50,000 & \$ 0 & 15 \% \
\$ 50,001 - \$ 75,000 & \$ 7,500 & 25 \% \
\$ 75,001 - \$ 100,000 & \$ 13,750 & 34 \% \
\$ 100,001 - \$ 335,000 & \$ 22,250 & 39\% \
\$335,000-\$10,000,000&\$113,900&34\%
\end{array}$$

Question

Scuba, Inc. is concerned about the taxes paid by the company in 2018. In addition to $5 million of taxable income, the firm received $80,000 of interest on state-issued bonds and $500,000 of dividends on common stock it owns in Boating Adventures, Inc. What are Scuba's tax liability, average tax rate, and marginal tax rate, respectively?
$$\begin{array} { l c c c } 
& \text { Pay this amount on } & \text { Plus this percentage on } \
\text { Taxable income } & \text { Base income } & \text { anything over the base } \
\$ 0 - \$ 50,000 & \$  0 & 15 \% \
\$ 50,001 - \$ 75,000 & \$  7,500 & 25 \% \
\$ 75,001 - \$ 100,000 & \$  13,750  & 34 \% \
\$ 100,001 - \$ 335,000 & \$  22,250 & 39\% \
\$335,000-\$10,000,000&\$113,900&34\%
\end{array}$$

Quizplus · Accepted Answer

The Answer of Scuba, Inc. is concerned about the taxes paid by the company in 2018. In addition to $5 million of taxable income, the firm received $80,000 of interest on state-issued bonds and $500,000 of dividends on common stock it owns in Boating Adventures, Inc. What are Scuba's tax liability, average tax rate, and marginal tax rate, respectively?
$$\begin{array} { l c c c } 
& \text { Pay this amount on } & \text { Plus this percentage on } \
\text { Taxable income } & \text { Base income } & \text { anything over the base } \
\$ 0 - \$ 50,000 & \$  0 & 15 \% \
\$ 50,001 - \$ 75,000 & \$  7,500 & 25 \% \
\$ 75,001 - \$ 100,000 & \$  13,750  & 34 \% \
\$ 100,001 - \$ 335,000 & \$  22,250 & 39\% \
\$335,000-\$10,000,000&\$113,900&34\%
\end{array}$$

Scuba, Inc A) $1,637,100, 31