For 2019

Tax Drill - Tax on Jeopardizing Investments Raja is the CEO of Rand R, Inc., a private foundation. Raja invests $300,000 (75%) of the foundation's investment portfolio in derivatives. Previously, the $300,000 had been invested in corporate bonds with an AA rating that earned 2% annually. If the derivatives investment works as Raja's investment adviser claims, the annual earnings could be as high as 15%. Considering the tax on jeopardizing investments, complete the following sentences. The initial tax imposed on R and R is $ and the initial tax imposed on Raja is $ imposition of the tax is not addressed within the correction period, the additional tax for Rand R would be $ additional tax for Raja would be $ . If the act causing the 75,000 and the