Assume that Western Exploration Corp. is considering the acquisition of Ogden Drilling Company. The latter has a $500,000 tax loss carryforward. Projected earnings for the Western Exploration Corp. are as follows: Before-tax income Taxes (40%) Income available to stockholders Reduction in taxes 2011 $210,000 84,000 $126,000 a. How much will the total taxes of Western Exploration Corp. be reduced as a result of the tax loss carryforward? (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Income available to stockholders 2012 2013 $420,000 $250,000 100,000 168,000 $150,000 $252,000 b. How much will the total income available to stockholders be for the three years if the acquisition occurs? (Do not round intermediate calculations and round your answers to the nearest whole dollar.) 2011 Total Values $880,000 352,000 $528,000 2012 2013 Total

Assume that Western Exploration Corp. is considering the acquisition of Ogden Drilling Company. The latter has a \\( \\$ 500,000 \\) tax loss carryforward Projected earnings for the Westem Exploration Corp. are as follows: a. How much will the total taxes of Western Explaration Corp. be reduced as a tesult of the tax loss carryforward? (Do not round intermediate colculations and round your answer to the nearest whole dollar.) b. How much will the total income avalable to stockholders be for the three years if the acquisition occurs? (Do not round intermediate calculations and round your onswers to the nearest whole dollor.)