A company has $14,500,000 in taxable income. Consider the following corporate marginal tax rates: Taxable income ($) 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% 18,333,334+ 35% Attempt 1/10 for 10 pts. Part 1 What is the marginal tax rate for the company?

35%

Explanation:

The marginal corporate tax rate is the added tax amount that a company pays for every additional dollar that it makes as income.

It is given in ranges which show the rate to be paid for the amount of income earned by the company.

This company earned $14,500,000 in taxable income and so will fall under the 10,000,001- 15,000,000 bracket which means that their marginal tax rate is 35%.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: