Rejoice, Inc., a private foundation, has existed for 10 years. Rejoice held undistributed income of $160,000 at the end of its 2020 tax year. Of this amount, $90,000 was distributed in 2021, and $70,000 was distributed during the first quarter of 2022. The IRS mailed a deficiency notice to Rejoice on August 1, 2023, relating to the entity’s undistributed income.

a. What is Rejoice’s initial tax on the 2020 undistributed taxable income for 2021? For 2022?

b. Express the 2021 tax computation as a Microsoft Excel formula.

c. What is Rejoice’s additional tax for 2023 relative to the 2020 income?