1. All of the following represent potential tax benefits that can directly result from an acquisition except:

a. Increasing the depreciation expense.

b. Using net operating losses.

c. Increasing surplus funds.

d. Increasing the use of leverage.

e. Increasing interest expense.

2. Which of the following amounts is closest to the end value of investing $10,000 for 18 months at a nominal annual interest rate of 12% compounded quarterly?

$11,800 $11,852 $11,940 $11,961 None of the above is within $100 of the correct answer.