Reference no: EM132531161

1) SINGLE TAXPAYERS $ MARRIED TAXPAYERS FILING JOINTLY $ TAX RATE %

0-9, 525 0-19,050 10

9,526-38,700 19,051-77,400 12

38,701-82,500 77,401-165,00 22

82,501-157,00 165,001-315,000 24

157,201-200,000 315,011-400,000 32

200,001-500,000 400,001-600,000 35

500,001 AND ABOVE 600,001 AND ABOVE 37

Use the Table (Do not round intermediate calculations. Enter the average tax rate as a percent rounded to 1 decimal place.)

Question a. What would be the marginal tax rate for a married couple with income of $90,100?

Question b. What would be the average tax rate for a married couple with income of $90,100?

Question c. What would be the marginal tax rate for an unmarried taxpayer with income of $90,100?

Question d. What would be the average tax rate for an unmarried taxpayer with income of $90,100?

2) The founder of Alchemy Products Inc. discovered a way to turn gold into lead and patented this new technology. He then formed a corporation and invested $1,200,000 in setting up a production plant. He believes that he could sell his patent for $48 million.

Question a. What is the book value of the firm? (Enter your answer in dollars not in millions.)

Question b. What is the market value of the firm? (Enter your answer in dollars not in millions.)

Question c. If there are two million shares of stock in the new corporation, what would be the book value per share? (Round your answer to 2 decimal places.)

Question d. If there are two million shares of stock in the new corporation, what would be the price per share? (Round your answer to 2 decimal places.)