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The Robbins Corporation is an oil wholesaler. The? firm's sales last year were $1.04 million, with the cost of goods sold equal to $630,000. The firm paid interest of $203,750 and its cash operating expenses were $103,000. Also, the firm received $43,000 in dividend income from a firm in which the firm owned 22% of the? shares, while paying only $12,000 in dividends to its stockholders. Depreciation expense was $49,000.
To compute the? firm's tax liability. What are the? firm's average and marginal tax? rates?
The Robbins? Corporation's tax liability for the year is what?
The? firm's average tax rate is what?
The? firm's marginal tax rate is what?
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