Simon Machine Tools Company is considering the purchase of a new set of machine tools to process special orders over the next three years. The following financial information is available:

• Without the project, the company expects to have a taxable income of $400,000 each year from its regular business over the next three years.
  This three‐year project requires the purchase of a new set of machine tools at a cost of $50,000. The equipment falls into the MACRS three‐year class.
• The tools will be sold at the end of the project life for $10,000. The project will bring in additional annual revenue of $90,000, but it is expected to incur additional annual operating costs of $25,000.

(a) What are the additional taxable incomes (from undertaking the project) during years 1 through 3, respectively?
(b) What are the additional income taxes (from undertaking the new orders) during years 1 through 3, respectively?