Question

Ezmerelda Jewelers has a marginal tax rate of 32 percent and an average tax rate of 20.9 percent. If the firm owes $34,330 in taxes, how much taxable income did it earn

Answer 1

Answer:

$164,259

Explanation:

Taxable income = Amount owed / Average tax rate

Taxable income = $34,330/20.9%

Taxable income = $34,330/0.209

Taxable income = $164258.3732

Taxable income = $164,259