Hemingway Corporation is considering expanding its operations to boost its income, but before making a final decision, it has asked you to calculate the corporate tax consequences of such a decision. Currently, Hemingway generates before$-$tax yearly income of $$194,000$ and has no debt outstanding. Expanding operations would allow Hemingway to increase before$-$tax yearly income to $$345,000.$ Hemingway can use either cash reserves or debt to finance its expansion. If Hemingway uses debt, it will have a yearly interest expense of $$68,000.$ Create a spreadsheet to conduct a tax analysis $($assume a $21\%$ flat tax rate$)$ for Hemingway Corporation and determine the following:

a$.$ What is Hemingway's current annual corporate tax liability?

b$.$ If Hemingway finances its expansion using cash reserves, what will be its new corporate tax liability?

c$.$ If Hemingway finances its expansion using debt, what will be its new corporate tax liability?

d$.$ What would you recommend the firm do$?$

a$.$ Hemingway's current annual corporate tax liability is $

$($Round to the nearest dollar.$)$

b$.$ If Hemingway finances its expansion using cash reserves, its new corporate tax liability will be $ $($Round to the nearest dollar.$)$

c$.$ If Hemingway finances its expansion using debt, its new corporate tax liability will be $ $($Round to the nearest dollar.$)$

d$.$ The expansion using $$ would be recommended because it provides a tax savings of $ $($the tax bill is $ $$ the "expansion$-$using$-$de $$ for the "expansion$-$using$-$cash" option$).$