I don't understand this. Please thoroughly explain. I$$m trying to complete it with paper and pencil. Please fully explain how I show calculate not understanding how.P$18-1$ Tax effects of acquisition Connors Shoe Company is contemplating the acquisition of

Salinas Boots, a firm that has shown large operating tax losses over the past few years. As a result

of the acquisition, Connors believes that the total pretax profits of the merger will not change from

their present level for $15$ years. The tax loss carryforward of Salinas is $$800,000,$ and Connors

projects that its annual earnings before taxes will be $$280,000$ per year for each of the next $15$

years. These earnings are assumed to fall within the annual limit legally allowed for application of

the tax loss carryforward resulting from the proposed merger $($see footnote $2$ earlier in this

chapter$).$ The corporate tax rate is $21\%.$

a$.$ If Connors does not make the acquisition, what will be the company's tax liability and

earnings after taxes each year over the next $15$ years?

b$.$ If the acquisition is made, what will be the company's tax liability and earnings after taxes each

year over the next $15$ years?

c$.$ If Salinas can be acquired for $$350,000$ in cash, should Connors make the acquisition, judging

on the basis of tax considerations? $($Ignore present value.$)$