What is Rejoice additional tax

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Problem - Rejoice, Inc., a private foundation, has existed for 10 years. Rejoice held undistributed income of $160,000 at the end of its 2017 tax year. Of this amount, $90,000 was distributed in 2018, and $70,000 was distributed during the first quarter of 2019. The IRS mailed a deficiency notice to Rejoice on August 1, 2020, relating to the entity's undistributed income.

a. What is Rejoice's initial tax on the 2017 undistributed taxable income for 2018? For 2019?

b. Express the 2018 tax computation as a Microsoft Excel formula.

c. What is Rejoice's additional tax for 2020?

Reference no: EM132663636

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