A Random Sample of Records of Electricity Usage of Homes

question 68

Multiple Choice

A random sample of records of electricity usage of homes gives the amount of electricity used in July and size (in square feet) of 135 homes.A regression was done to predict the amount of electricity used (in kilowatt-hours) from size.Suppose the linear model is appropriate.Do you think the slope is positive or negative? Why?

• A)Negative.Larger homes should use less electricity.
• B)Positive.The larger the number of houses the more electricity used.
• C)Negative.Smaller homes should use less electricity.
• D)Positive.More square feet indicates more houses.
• E)Positive.Larger homes should use more electricity.

Recognize the requirements and tax implications of forming a corporation, including the tax-free exchange provision.

Acquire knowledge about the specific tax forms and schedules relevant to corporate taxation.

Understand the key concepts of Adjusted Gross Income calculations and tax implications for corporations.

Comprehend the purpose and function of Schedule M-1 in reconciling taxable income to book income.

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Definitions:

Increase In Value

The appreciation or upward adjustment in the price or worth of an asset over time.

Maturity

The date on which the principal amount of a bond, loan, or other financial instrument becomes due and is to be paid back.

Zero-coupon Bond

A bond that does not make periodic interest payments during its life and is instead sold at a deep discount from its face value, with the full face value being paid at maturity.

Yield To Maturity

The cumulative income projected from a bond, provided it is retained till its expiration, factoring in both the interest disbursements and principal reimbursement.