Average Versus Marginal Tax Rate: Suppose Franklin Corporation Had Pre-Tax

Multiple Choice

Average versus Marginal Tax Rate: Suppose Franklin Corporation had pre-tax income of $300,000 in 2010 and that the firm would have paid $100,250.00 in federal income taxes. What is Franklin's average income tax rate? (Round off to the nearest 0.1%)

A) 39.0%
B) 34.7%
C) 33.4%
D) 38.6%