5. Jurisdiction B levies a flat 7 percent tax on the first $5 million of annual corporate income. Jersey Inc. generated $3.9 million income this year. Compute Jersey’s income tax and determine its average and marginal tax rate on total income. Leray Inc. generated $9.6 million income this year. Compute Leray’s income tax and determine Leray’s average and marginal tax rate on total income. What type of rate structure does Jurisdiction B use for its corporate income tax? 6. Jurisdiction X levies a flat 14 percent tax on individual income in excess of $35,000 per year. Individuals who earn $35,000 or less pay no income tax. Mr. Hill earned $98,750 income this year. Compute his income tax and determine his average and marginal tax rate. Ms. Lui earned $47,900 income this year. Compute her income tax and determine her average and marginal tax rate. Ms. Archer earned $34,100 income this year and paid no income tax. Describe her average and marginal tax rate. What type of rate structure does Jurisdiction X use for its individual income tax? 7. Government G levies an income tax with the following rate structure. Percentage Rate Bracket 6% Income from –0– to $30,000 10 Income from $30,001 to $70,000 20 Income from $70,001 to $200,000 28 Income in excess of $200,000 Taxpayer A’s annual income is $119,400. Compute A’s tax and average tax rate. What is A’s marginal tax rate? Taxpayer B’s annual income is $383,900. Compute B’s tax and average tax rate. What is B’s marginal tax rate? 8. Refer to Government G’s rate structure described in the preceding problem. Taxpayer O earns $50,000 annually during years 1 through 10. Taxpayer P earns $20,000 annually during years 1 through 5 and $80,000 annually during years 6 through 10. How much total income does each taxpayer earn over the 10-year period? Compute each taxpayer’s average tax rate for the 10-year period.