How much will the total taxes of western exploration corp, Finance Basics

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How much will the total taxes of western exploration corp

Question: Assume that Western Exploration Corp. is considering the acquisition of Ogden Drilling Company. The latter has a $400,000 tax loss carry forward. Projected earnings for the Western Exploration Corp. are as follows:

a. How much will the total taxes of Western Exploration Corp. be reduced as a result of the tax loss carry forward?

b. How much will the total income available to stockholders be for the three years if the acquisition occurs? Use the same format as that in the text.

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