What is the marginal tax rate and average tax rate

Assignment Help Microeconomics
Reference no: EM131916103

Problem

1. Martin Corporation had net operating income of $40,000. It also had $20,000 of interest expense and $35,000 of interest income during 2000.

A. How much income tax must the corporation pay?

B. What is the marginal tax rate?

C. What is the average tax rate?

2. The Green Corporation had net income from operations of $130,000 in 2000, including $30,000 in dividend income on small holdings of stocks of various major publicly held corporations.

A. How much tax must the corporation pay?

B. What is the average tax rate?

C. What is the marginal tax rate?

Reference no: EM131916103

Questions Cloud

What is the npv of the given project : Its pretax cost of equity is 14 percent, and its pretax cost of debt is 8 percent. The tax rate is 40 percent. What is the NPV of this project?
Fill in the net profit per unit to amcr corp : Potter, Inc., based in Washington, exports products to a German firm and will receive payment of €220,000 in three months.
What is the expected return on asset x : What is the expected return on asset X if it has a beta of 0.85, the expected market return is 11.50 percent, and the risk-free rate is 5.75 percent?
How much should you receive for the ncd if you sell it : A 182-day $14 million negotiable CD has a 5.00% annual rate quote. It is currently selling at par as market rates are 5%. Thirty days have passed.
What is the marginal tax rate and average tax rate : The Green Corporation had net income from operations of $130,000 in 2000, including $30,000. What is the marginal tax rate and average tax rate?
Estimate the required return on equity for providence : Each company has a tax rate of 34 percent. The risk-free rate is 6 percent and the expected return on the market portfolio is 12.5 percent.
What is the payback period for hudson hall : If there are no interest fees to consider, and if only student dorm fees are applied to the capital fund, what is the payback period for Hudson Hall?
How much income tax must the corporation pay : How much income tax must the corporation pay? What is the marginal tax rate? What is the average tax rate?
Find the accounts receivable for 2015 : Listed below are partial financial statements for Worldwide Widget Manufacturing, Inc. Fill in the missing information in each of the following statement.

Reviews

Write a Review

Microeconomics Questions & Answers

  Existence of externalities

What are some goods and services which produce positive externalities generally produced by the government?

  Analyze the economic impact of major social problems

Analyze the economic impact of major social problems and issues

  Determine the most commonly used population

Determine the most commonly used population and individual measures used in providing healthcare today. Examine the primary impact that these measures exert on the choices that consumers make in order to address their own healthcare needs. Justify..

  Two players start at forty paces apar

Two players start at forty paces apart. Each has a gun loaded with one bullet. For simplicity we will assume that at each distance the player at the left has the option of shooting first. If s/he does not shoot then the player at the right has the op..

  To expect the events that affect the market equilibrium

you are the manager of a California winery.then how would you expect the events to affect the market equilibrium price you receive for a bottle of wine.

  How you see interest rates specifically federal funds rate

how you see interest rates- specifically the Federal Funds rate, which is the interest rate the FOMC is raising or lowering, or holding the line on.

  Exercise 1 quantity quotaa new chemical cleaning solution

exercise 1 quantity quotaa new chemical cleaning solution is introduced to the market. initially demand is qd 1000

  The proportion who smoke among adult residents of kentucky

The proportion who smoke among adult residents of Kentucky in 2004 was 0.276, the highest of any state in the United States. Treat this as the population proportion, and suppose you take a random sample of 300 Kentucky residents.

  When financial system regulators ways limit systematic risks

Lower bank capital increases the likelihood of bankruptcy, but lower bank capital increases or decreases the return on equity for a given return on assets?

  It would always be a mistake to view

It would always be a mistake to view

  What is the individual''s utility-maximizing choice

3. Suppose an individual's utility function over income (M) and leisure (L) is U(M,L)·L, and the individual has non-labor income Y and earns wage w.  The total amount of time available is 16 hours.a. What is the equation for the budget constraint?  G..

  When writing a formal argument

When writing a formal argument, you should avoid using non-academic sources. Why is it be detrimental to your writing to use non-academic sources?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd