Chartworth Associates' financial statements indicated that the company has EBITDA of $3,145,903. It had depreciation of $633,000, and its interest rate on debt of $1.25 million was 7.5%. The company is likely to owe $822,512 in taxes. What are the marginal and average tax rates for this company?

Chartworth Associates' financial statements indicated that the company has EBITDA of $3,145,903. It had depreciation of $633,000, and its interest rate on debt of $1.25 million was 7.5%. The company is likely to owe $822,512 in taxes. What are the marginal and average tax rates for this company?


Tax Rate Taxable Income

15% $0 to $50,000
25 50,001 - 75,000
34 75,001 - 100,000
39 100,001 - 335,000
34 335,001 - 10,000,000
35 10,000,001 - 15,000,000
38 15,000,001 - 18,333,333
35 More than $18,333,333


A) 34%, 35%
B) 35%, 34%
C) 34%, 34%
D) none of the above


Answer: C


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