Final answer:
The average tax rate for a firm with taxable income of $118,740 in 2017 depends on the tax bracket it falls into. The tax brackets for corporations have a flat rate structure, where the tax rate remains the same for a certain income range.
Step-by-step explanation:
The average tax rate for a firm with taxable income of $118,740 in 2017 depends on the tax bracket it falls into. The tax brackets for corporations have a flat rate structure, where the tax rate remains the same for a certain income range. According to the tax rate structure provided, the flat tax rate for incomes from $335,000 to $10,000,000 is 34%, gradually increasing to 35% for incomes above $18,333,333.
To determine the average tax rate, we need to know which income range the $118,740 falls into. If it falls into the range of $0 to $335,000, the average tax rate would be 34%. However, if it falls into the range of $335,000 to $10,000,000, the average tax rate would be lower than 34%, and if it falls into the range above $10,000,000, the average tax rate would be 35%.