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6 . Firm E operates in a jurisdiction that levies an income tax with the following rate structure: Rate Bracket 7 % Income from $

6. Firm E operates in a jurisdiction that levies an income tax with the following rate structure:
Rate Bracket
7% Income from $0 to $75,000
10% Income from $75,001 to $150,000
15% Income in excess of $150,000
Firm E has the opportunity to invest in a business project that should generate $20,000 of additional taxable income for the year. Compute the tax cost of this additional income assuming that:
a) Firm Es taxable income before considering the additional income is $130,000

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