Red blue white and magenta have taxable income as

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Reference no: EM13370267

Red, Blue, White, and Magenta have taxable income as given:

Corporation Taxable Amount
Blue $ 91,000
White 320,000
Red 800,000
Magenta 50,000,000

a. Determine the marginal tax rate and the effective tax rate for each of the C corporations.

b. Describe why marginal tax rate for a C corporation can exceed 35%, but effective tax rate cannot.

Reference no: EM13370267

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