1. Calculate the after-tax cost of debt for loans with the following effective annual interest rates and corporate tax rates.
a. Interest rate, 10%; tax rate, 0%.
b. Interest rate, 10%; tax rate, 22%.
c. Interest rate, 10%; tax rate, 34%.
2. Which of the following would qualify as a 1031 exchange?
A. An ice cream maker for inventory of rocky road ice cream
B. Land for an office building
C. Office equipment for a common stock
D. All of the above