1. William has decided to purchase a large apartment complex. He pays $100,000 cash, obtains a loan on the property for $500,000, and assumes the first mortgage balance of $250,000. He also gives the sellers $100,000 of marketable securities that he purchased three years ago for $125,000 and paid a finders fee of $5,000, legal fees of $6,000, and transfer taxes of $12,000. What is Williams acquisition basis for the building? Does he have any other tax consequences as a result of this purchase? 2. Continental Corporation has $1,000,000 in common stock and $1,000,000 in 7 percent 10-year bonds in its capital structure. How much does Continental save in taxes in current dollars over the 10 years the bonds are outstanding by having these bonds instead of an all-equity capital structure? Assume Continental has a 34 percent marginal tax rate in all years