Calculate the tax liability and after-tax earnings

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Reference no: EM132033573

a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of corporate earnings before taxes: $ 9,700; $81,900; $301,000; $504,000?; $1.1 million; $9.6 million; $20.2 million.

b. Plot the average tax rates (measured on the y axis) against the pretax income levels? (measured on the x axis). What generalization can be made concerning the relationship between these variables?

Reference no: EM132033573

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