Mr and Mrs

question 15

Multiple Choice

Mr. and Mrs. David file a joint tax return. They have $169,300 taxable income in 2013, $120,300 of which is ordinary income and $49,000 of which is taxed at a 15% preferential rate. Compute their tax savings from the preferential rate.

• A)$6,370
• B)$5,587
• C)$4,900
• D)None of the above.

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Definitions:

Regression Model

A statistical approach for estimating the relationships among variables, often used for prediction and forecasting.

Total Variation

The overall variation in a set of data, which can be partitioned into components attributed to various sources in statistical analyses.

SSR

Sum of Squares due to Regression, a measure used in statistical analysis to describe the variation explained by the regression model.

Coefficient

A fixed number or constant that precedes and multiplies the variable in an algebraic term.