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Semah Corporation is considering the acquisition of Darah Corporation. The latter has a $400,000 tax loss carry-forward. Projected earnings for the Semah Corporation are as
Semah Corporation is considering the acquisition of Darah Corporation. The latter has a $400,000 tax loss carry-forward. Projected earnings for the Semah Corporation are as follows: 2010 2011 2012 Total Before-tax income. $ 160,000$200,000$300,000 $660,000 Taxes (25%). 40,000 50,000 75,000 165,000 Income available to shareholders. $ 120,000$150,000 $225,000$495,000 How much will the total income available to shareholders be for 2012 if the acquisition occurs? O A. 250,000 OB. 195,000 O C. 120.000 OD. 150,000
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