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  3. 16. assume $510,000 that the blues corporation is

16. Assume $510,000 that the Blues Corporation is considering the acquisition of the Clues Company....

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Accounting

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16. Assume $510,000 that the Blues Corporation is considering the acquisition of the Clues Company. The latter has a tax loss carry forward. Projected earnings for the Blues Corp. are as follows: Total Values 20x2 20X3 20x1 $165,000$245,000 $400,000$810,000 Before-tax income Taxes 57.750 85,750 140,000 283,500 (35%) Income available to stockholders $107,250 $159,250 $260,000 $526,500 a. How much will the total taxes of Western Exploration Corp. be reduced as a result of the tax los carryforward (3pts)? 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 (3pts). b

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