Tax Drill $-$ Tax on Jeopardizing Investments

Raja is the CEO of R and 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 $

$x.$ If the act causing

the imposition of the tax is not addressed within the correction period, the additional tax for $R$ and $R$ would be $

$$ and

the additional tax for Raja would be $

x $.$