Toni's Typesetters is analyzing a possible merger withPete's Print Shop. Toni's has a tax loss carryforward of $350,000, which it could apply toPete's expected earnings before taxes of $175,000 per year for the next 5 years. Using a 24% taxrate, compare the earnings after taxes forPete's over the next 5 years both without and with the merger.

Without themerger, Pete's PrintShop's earnings after taxes in years 1 through 5 is $

With themerger, thefirm's earnings after taxes in year 1 is $

With themerger, the earnings after taxes in year 2 is $

With themerger, the earnings after taxes in years 3 through 5 is $