Determining the average tax rate

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Zena is preparing the income statement for Zena Enterprises. She was provided the following information from her accounting assistant.  Here's the data she has been working with: Sales: $1,600,000; cost of goods sold:  $848,000; General &Administrative Expenses:  $250,000; advertising:  $75,000.  Zena Enterprises borrowed $120,000 from the bank and paid $12,000 in loan interest.  They had invested in IBM and received a dividend check from IBM of $20,000. Their capital structure includes both preferred and common stock and they paid $10,000 and $15,000 respectively in dividends.

Given all that I need you to tell me three things: What was their federal tax bill, what was their average tax rate, what was their marginal tax rate.  You must show all calculations and label each line.  If you do not, you risk losing points.

Reference no: EM131412073

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