What is the marginal tax rate for a corporation with $60,000 taxable income and an average tax rate of 16.67 percent if the next-lowest marginal tax rate of 15 percent covers taxable incomes up to $50,000?

Question

Quizplus · Accepted Answer

The marginal tax rate is the rate applied to the next dollar of income. Since the corporation's taxable income exceeds $50,000, it falls into the next tax bracket, which is 25 percent.

What Is the Marginal Tax Rate for a Corporation with $60,000