Jurisdiction b levies a flat 7 percent tax on the first $5 million of annual corporate income. jersey inc. generated $3.7 million income this year. compute jersey’s income tax and determine its average and marginal tax rate on total income. leray inc. generated $9.4 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?

Arnold rossiter is a 40-year-old employee of the barrington company who will retire at age 60 and expects to live to age 75. the firm has promised a retirement income of $20,000 at the end of each year following retirement until death. the firm's pension fund is expected to earn 7 percent annually on its assets and the firm uses 7% to discount pension benefits. what is barrington's annual pension contribution to the nearest dollar for mr. rossiter? (assume certainty and end-of-year cash flows.)