Final answer:
The average tax rate for a firm with taxable income of $131,013 can be calculated using the provided tax rate structure and the formula for average tax rate.
Step-by-step explanation:
The average tax rate for a firm with taxable income of $131,013 would depend on the specific tax rate structure. However, based on the provided information, we know that the tax rate structure for individual taxpayers is progressive, meaning that the tax rate increases as taxable income increases.
Since the taxable income falls within the range mentioned, we can use the applicable tax rates to calculate the average tax rate. Based on the provided rate structure, the average tax rate for a taxable income of $131,013 would be the sum of the products of each tax rate and the corresponding income bracket, divided by the total taxable income.
To calculate the average tax rate:
- Identify the income bracket that includes $131,013.
- Multiply the taxable income in that bracket by the corresponding tax rate.
- Sum up the products from step 2.
- Divide the sum from step 3 by $131,013 to calculate the average tax rate.