1) In 2010, Trucking Inc. had $1,250,000 in revenues and $1,013,000 in expenses. What are the Average and Marginal Tax rates respectively? (round to nearest whole percent)
a) 29% Average, 25% Marginal
b) 39% Average, 31% Marginal
c) 32% Average, 39% Marginal
d) 34% Average, 39% Marginal
2) Your are projecting Operating Revenues and Expenses of $200K and $130K respectively.
You are considering a project that would provide additional Revenues and Expenses of
$40K and $20K respectively. What is the incremental tax rate of the project?
3) If your company's taxable income is $80,000 and state taxes are 6% and federal taxes are
34%, how much TOTAL TAXES do you owe?
4) For a certain commodity, prices increase by 50% the first year and 30% the second year.
Determine the average inflation rate for this commodity over this two-year period.