In December 2008, Arcor Co

question 79

Multiple Choice

In December 2008, Arcor Co.advanced funds of $200,000 to Mr.Jones, a new employee of the corporation, to assist him in acquiring a residence when he moved from Newfound- land to commence employment in British Columbia.The loan bears no interest and is to be repaid in full on December 31, 2013.The prescribed interest rate at the time of this ad- vance was 5 percent.Assuming that the prescribed interest rate throughout 2011 was 6 percent, which one of the following represents the increase in Mr.Jones's Taxable Income in 2011 due to this loan?

• A)$ 8,750.
• B)$10,000.
• C)$10,500.
• D)$12,000.
• Tax Payable

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Definitions:

Mean Absolute Deviation

The average of the absolute differences between each data value in a set and the mean of the data set, measuring dispersion.

Moving Averages

A mathematical method applied to even out brief variations and emphasize longer-term tendencies within data.

Autoregressive Model

A statistical model for analyzing and forecasting time-series data, where future values are predicted based on past values of the variable.

Time Series

A succession of data points, generally capturing periodic readings collected over a specified duration.