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Toni's Typesetters is analyzing a possible merger with Pete's Print Shop. Toni's has a tax loss carryforward of $400,000, which it could ap to Pete's

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Toni's Typesetters is analyzing a possible merger with Pete's Print Shop. Toni's has a tax loss carryforward of $400,000, which it could ap to Pete's expected earnings before taxes of $200,000 per year for the next 5 years. Using a 27% tax rate, compare the earnings after taxe 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 $0). (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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