Jurisdiction B levies a flat 7 percent tax on the first $5 million of annual corporate income.   Required: Jersey Incorporated generated $2.7 million income this year. Compute Jersey’s income tax and determine its average and marginal tax rate on total income. Leray Incorporated generated $7.4 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?

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