1.) A company reports the following:

Tax rate = 35%	2012	2013	2014
Taxable income	2,000	2,500	-1,500
Taxes paid	-700	-875	0

How much of a tax refund will be received in 2012 and 2013?

	a.	2012: refund = $700; 2013: refund = none
	b.	2012: refund = 700; 2013: refund = 875
	c.	2012: refund = 525; 2013: refund = 525
	d.	2012: refund = 525; 2013: refund = none

2.) A business purchases depreciable equipment for 191, and sells it a few years later for 143. At the time of the sale, accumulated depreciation totals 92. If the company's tax rate is 33, what is the total after tax cash flow that will result from selling this asset?

Please show work for both answers.