Answered

Franklin Corporation just paid taxes of $152,000 on taxable income of $512,000. The marginal tax rate is 35% for the company. What is the average tax rate for the Franklin Corporation?

Answer :

Ritmeks

Answer:

29.69%

Explanation:

Franklin corporation just paid taxes of $152,000

The taxable income is $512,000

Therefore, the average tax rate can be calculated as follows.

= Amount of taxes paid/amount of taxable income

= $152,000/$512,000

= 0.2969×100

= 29.69%

Hence the average tax rate for Franklin's corporation is 29.69%

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