Reference no: EM132070687

Last year? Sanderson, Inc. had sales of $ 3.0 million. The? firm's cost of goods sold came to $ 2.0 million, its operating expenses excluding depreciation of $ 100,000 were $400,000 and the firm paid $150,000 in interest on its bank loans. ? Also, the corporation received $ 50,000 in dividend income? (from a company in which it owned less than 20 percent of its? shares) but paid $ 25,000 in the form of dividends to its own common stockholders. Use the corporate tax rates shown in the popup? window,

Taxable Income                 Marginal Tax Rate

$0-$50,000                            15%

$50,001-$75,000                    25%

$75,001-$100,000                  34%

$100,001-$335,000                39%

$335,001-$10,000,000            34%

$10,000,001-$15,000,000       35%

$15,000,001-$18,333,333       38%

Over $18,333,333                   35%

To calculate the corporation's tax liability.

What are the firm's average and marginal tax rates?