1. The Wendt Corp had $10.0 Million in taxable income. (a) What is the company's federal income tax bill for the year? (b) Assume the firm receives an additional $1 million of interest income from some bonds it owns. What is the additional tax on this interest income? (c) Now assume that Wendt does not receive the interest income but does receive an additional $1 million as dividends on some stock it owns. What is the additional tax on this dividend income?

2. The start-up firm you founded is trying to save $10,000 in order to buy a parcel of land for a proposed small warehouse expansion. In order to do so, your finance manager is authorized to make deposits of $1250 per year into the company account that is paying 12% annual interest. The last deposit will be less than $1250 if less is needed to reach $10,000. How many years will it take to reach the $10,000 goal and how large will the last deposit be?