2024 – 1 In 2010 Trucking Inc had 1 250 000 in revenues and 1 013 000 in expenses What are the Average and

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?
a) 29.54%
b) 17.86%
c) 20.94%
d) 31.75%

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?
a) $25,568
b) $30,368
c)  $32,000
d) $27,200

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.
a) 80.0%
b)  40.5%
c) 39.6%
d) 40.0%