Business J operates in a jurisdiction that levies an income tax with the following rate structure. Percentage Rate Bracket 7% Income from 0 to $75,000 10 Income from $75,001 to $150,000 15 Income in excess of $150,000 Business J has the opportunity to invest in a project that should generate $22,900 additional taxable income for the year. Compute the tax cost of this additional income assuming that: a. Business Js taxable income before considering the additional income is $113,250. b. Business Js taxable income before considering the additional income is $434,000.

c. Business J has a $20,500 loss before considering the additional income.