1. During a job interview, Pam Thompson is offered a salary of $33,000. The company gives annual raises of 13 percent. What will Pam’s salary during her fifth year on the job?
2. The financial crisis that began in 2007 led to the failure of a historical amount of banks. Discuss what caused the financial crisis and why that caused such a large amount of banks to fail.
3. Rhonda Lash transfers land with an adjusted basis of $100,000 to R. S. Fitness Equipment, Inc. for $200,000 of stock in the corporation, $50,000 in cash, and the corporation's agreement to assume a $75,000 liability secured by the land. After the transfers, Rhonda owns 85 percent of the voting stock of the corporation. What is her basis in the stock received?
a. $25,000
b. $75,000
c. $100,000
d. $200,000