Frank Is a Self-Employed Architect Who Maintains a Qualifying Office

question 30

Multiple Choice

Frank is a self-employed architect who maintains a qualifying office in his home. Frank has $80,000 gross income from his practice and incurs $72,000 in salaries, supplies, computer services, etc. Frank's mortgage interest and real estate taxes allocable to the office total $3,000. Other expenses total $9,000 and consist of depreciation, utilities, insurance, and maintenance. Frank's total office in home deductions are

• A)$3,000
• B)$5,000
• C)$8,000
• D)$9,000
• E)$12,000

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Definitions:

Binomial Distribution

A probability distribution that represents the number of successes in a fixed number of trials, each with the same probability of success.

Alpha

In statistics, it denotes the significance level used in hypothesis testing, typically set to 0.05 or 5%, representing the probability of rejecting the null hypothesis when it is actually true.

Likelihood

The probability of a particular outcome given a set of parameters within a statistical model.

Binomial Variable

A type of discrete variable that can take one of two independent values, often representing success or failure in an experiment.