1. Big Bucks, a publicly traded corporation, paid its CEO $1,650,000 of base compensation for the year. What is the after-tax cost of paying the salary assuming a 30 percent marginal tax rate?

2. Sequoia purchased the rights to cut timber on several tracts of land over a fifteen-year period. It paid $510,000 for cutting rights. A timber engineer estimates that 510,000 board feet of timber will be cut. During the current year, Sequoia cut 55,000 board feet of timber, which it sold for $910,000. What is Sequoia's cost depletion expense for the current year?

3. Suzanne received 20 ISOs (each option gives her the right to purchase 20 shares of stock for $12 per share) at the time she started working when the stock price was $13 per share. Three years later, when the share price was $23 per share, she exercised all of her options. If Suzanne holds the shares for ten additional months and sells them when the market price is $30, how much gain will Suzanne recognize on the sale and how much tax will she pay assuming her marginal tax rate is 35 percent?

4.. Sunshine LLC sold furniture for $75,500. Sunshine bought the furniture for $89,900 several years ago and has claimed $24,950 of depreciation expense on the machine. What is the amount and character of Sunshine's gain or loss?