Exhibit 17

question 43

Essay

Exhibit 17.8.A realtor wants to predict and compare the prices of homes in three neighboring locations.She considers the following linear models:
Model A: Price = β₀ + β₁Size + β₂Age + ε,
Model B: Price = β₀ + β₁Size + β₂Loc1 + β₃Loc2 + ε,
Model C: Price = β₀ + β₁Size + β₂Age + β₃Loc1 + β₄Loc2 + ε,
where,
Price = the price of a home (in $thousands),
Size = the square footage (in square feet),
Loc1 = a dummy variable taking on 1 for Location 1,and 0 otherwise,
Loc2 = a dummy variable taking on 1 for Location 2,and 0 otherwise.
After collecting data on 52 sales and applying regression,her findings were summarized in the following table.

Comprehend the treatment and valuation of various forms of initial investments into a partnership, including cash, equipment, buildings, accounts receivable, and property with associated mortgages or accumulated depreciation.

Interpret the implications of partnership agreements on income distributions, including the allocation of net income among partners according to agreed-upon ratios, salaries, and interest on capital.

Recognize how partner contributions and distributions, including the addition of non-monetary assets, affect the partners’ capital accounts.

Understand the concept of partnership liquidation and the situations that may lead to it.