Commercial Carpet Inc. is specialized in selling carpet to commercial businesses. The manager of the store conducts a five month experiment to determine the effect of advertising on sales revenue. The results are tabulated below:

Month Advertising Expenditure ($100s) Sales Revenue ($1000s) 1 1 1 2 2 1 3 3 2 4 4 2 5 5 4

Use the least square method to come up with the best linear line fitting this data. What are the slope and y-intercept for the linear equation based on least sqaure method?

Select one:

A. slope=0.95, y-intercept=-0.2

B. slope=0.7, y-intercept=-0.1

C. slope=-0.1, y-intercept=0.7

D. slope=1.2, y-intercept=0.3

E. None of the above answers is correct

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Reference Commercial Carpet problem statement, for $300 in advertising expenditure, how much is the corresponidng sales revenue?

Select one:

A. $2650

B. $2000

C. $400

D. $3900

E. $209.90

F. None of the above answers is correct

Question 19

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Reference Commercial Carpet problem statement, what percentage of data is explained by regression equation?

Select one:

A. 100%

B. 0%

C. 88.6%

D. 34.5%

E. 81.67%

Question 20

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Reference Commercial Carpet problem statement, using t-test and significance level of 5%, is the linear relationship described by regression equation based on the least square method statistically significant?

Select one:

A. reject null hypothesis, the linear relationship described by regression equation is statistically significant

B. don't reject null hypothesis, the linear relationship described by regression equation is not statistically significant

C. reject null hypothesis, the linear relationship described by regression equation is not statistically significant

D. don't reject null hypothesis, the linear relationship described by regression equation is statistically significant

E. None of the above answers is correct

Please explain how you got your answer if you want me to award you points.

1. Dondee Realty Company owns an apartment building that has an adjusted basis of $740,000, but is subject to a mortgage of $230,000. Dondee transfers the apartment building to Broadview, Inc. and receives from Broadview $210,000 in cash and an office building with a FMV of $1,000,000 at the time of the exchange. Broadview assumes the $230,000 mortgage on the apartment building a. What is Dondee's realized gain or loss on the apartment building? Realized 1,440,000 Basis (740,000) Realized Gain 700,000 b. What is its recognized gain or loss on the apartment building? Realized Gain 700,000 Boot Rec. > 440,000 = Recognized Gain c. What is the basis of the newly acquired office building? FMV 1,000,000 Deferred Gain (260,000) Adj. Basis of Building 740,000 2. Thomas's automobile, adjusted basis of $12,000, is used exclusively for business and is damaged in an accident. The FMV before the accident is $18,000 and the FMV after is just $950. If the insurance recovery is $16,000, what is Thomas's adjusted basis after the casualty? What is his casualty gain, if any? Insurance 16,000 Basis (12,000) Casuality Gain 4,000 Basis after 0 Chapter 7 Homework from Book: #11 a. No realized loss can be recognized because it is a personal use asset. b. Realized 505,000 Adj. Basis (480,000) Realized Gain 25,000 c. Gain would be the same, and the realized loss of 20,000 (460,000480,000) would also be recognized. #19 a. Shelia: Realized Adj. Basis Realized Gain Rec. Gain Jacob: Realized Adj. Basis Realized Gain Rec. Gain b. Sheila: Realized Adj. Basis Realized Loss Rec. Loss Jacob: Realized Adj. Basis Realized Gain Rec. Gain #31 a. Realized Adj. Basis Realized Gain Rec. Gain b. Its cost: 15,000 c. ? d. Realized Adj. Basis Realized Loss Rec. Loss 40,000 (24,000) 16,000 16,000 48,000 (40,000) 8,000 8,000 40,000 (60,000) (20,000) 0 Related Parties 48,000 (40,000) 8,000 8,000 Not originally transferred to jacob 15,000 (12,000) 3,000 3,000 12,000 (15,000) 3,000 3,000 Avoids 1031 #34 Realized G/(L) = FMV + Boot Rec. - Adj Basis Postponed New Basis = FMV - Postponed G/(L)