Question
Toni's Typesetters is analyzing a possible merger with Pete's Print Shop. Toni's has a tax loss carryforward of $ 450,000, which it could apply to
Toni's Typesetters is analyzing a possible merger with Pete's Print Shop. Toni's has a tax loss carryforward of $ 450,000, which it could apply to Pete's expected earnings before taxes of $225,000 per year for the next 5 years. Using a 29% tax rate, compare the earnings after taxes for Pete's over the next 5 years both without and with the merger.
Without the merger, Pete's Print Shop's earnings after taxes in years 1 through 5 is $_____. (Round to the nearest dollar.)
With the merger, the firm's earnings after taxes in year 1 is $____. (Round to the nearest dollar.)
With the merger, the earnings after taxes in year 2 is $______. (Round to the nearest dollar.)
With the merger, the earnings after taxes in years 3 through 5 is $____. Round to the nearest dollar.)
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