The homeownership rate in the U.S. was $67.4 \%$ in 2009. In order to determine if homeownership is linked with income, 2009 state-level data on the homeownership rate (Ownership in %) and median household income (Income in $) were collected. A portion of the data is shown in the accompanying table.$

$$\begin{array}{|l|c|c|} \hline \text { State } & \text { Ownership } & \text { Income } \\ \hline \text { Alabama } & 74.1 & 39980 \\ \hline \text { Alaska } & 66.8 & 61604 \\ \hline & \vdots & \vdots \\ \hline \text { Wyoming } & 73.8 & 52470 \\ \hline \end{array}$$

$

What is the standard error of the estimate?

TenTec in Sevierville, Tennessee, makes commercial and amateur radio equipment, including receivers, transceivers, antenna tuners, linear amplifiers, and so on. Their taxable income last year was $720,000. They have established a new line of electronic equipment that is on sale this year and that is expected to add another$140,000 to taxable income.

a. Determine the effective (average) tax rate on all of last year’s taxable income.

b. Determine the effective (average) tax rate on all of this year’s taxable income.

c. Determine the incremental tax rate.

d. Determine the marginal tax rate this year

Katherine, Alliah, and Paulina create a partnership. Katherine contributes $150,000, Alliah contributes$150,000, and Paulina contributes $100,000. Their partnership agreement calls for the income or loss division to be based on the ratio of capital invested. If the partnership reports income of$90,000 for its first year of operations, what amount of income is credited to Paulina's capital account?
a. $22,500
b.$25,000
c. $45,000
d.$30,000
e. $90,000

The Sterling Tire Company’s income statement for 20X1 is as follows:

Given this income statement, compute the following: Break-even point in units.

Stacy Corporation had income from operations of $7,200,000. In addition, it suffered an unusual and infrequent pretax loss of$770,000 from a volcano eruption, interest revenue of $17,000, and a write-down on buildings of$53,000. The corporation's tax rate is 30%. Prepare a partial income statement for Stacy beginning with Income from operations. The corporation had 5,000,000 shares of common stock outstanding during 2020.

The homeownership rate in the U.S. was $67.4 \%$ in 2009. In order to determine if homeownership is linked with income, 2009 state-level data on the homeownership rate (Ownership in %) and median household income (Income in $) were collected. A portion of the data is shown in the accompanying table.$

$$\begin{array}{|l|c|c|} \hline \text { State } & \text { Ownership } & \text { Income } \\ \hline \text { Alabama } & 74.1 & 39980 \\ \hline \text { Alaska } & 66.8 & 61604 \\ \hline & \vdots & \vdots \\ \hline \text { Wyoming } & 73.8 & 52470 \\ \hline \end{array}$$

$

Interpret the coefficient of determination.

Texcar Co. is considering the following alternative financing plans:

$$\begin{array}{lrr} & \textbf { Plan 1 } & \textbf { Plan 2 } \\ \hline \text { Issue } 6 \% \text { bonds (at face value) } & \$ 6,000,000 & \$ 5,000,000 \\ \text { Issue preferred } \$ 3 \text { stock, } \$ 30 \text { par } & - & 3,000,000 \\ \text { Issue common stock, } \$ 20 \text { par } & 6,000,000 & 4,000,000 \end{array}$$

Income tax is estimated at 40% of income.

Determine the earnings per share of common stock, assuming income before bond interest and income tax is $1,200,000.

Kline Products had a beginning inventory of $\$ 635,500$ on January 1 . During the quarter, goods costing $\$ 2,245,600$ were manufactured. The inventory at the end of March was $\$ 785,400$. During the quarter, Kline's net sales were $\$ 3,265,800$.

The partners Herrera and Rothenberg share net income at $40 \%$ and $60 \%$, respectively. Their net income last year was $\$ 248,500$. Find each partner's total share of the net income.

The Sterling Tire Company’s income statement for 20X1 is as follows:

Given this income statement, compute the following: Degree of financial leverage.

During 2016, its first year of operations, Baginski Steel Corporation reported a net operating loss of $375,000 for financial reporting and tax purposes. The enacted tax rate is 40%. Required: 1. Prepare the journal entry to recognize the income tax benefit of the net operating loss. Assume the weight of available evidence suggests future taxable income sufficient to benefit from future deductible amounts from the net operating loss carryforward. 2. Show the lower portion of the 2016 income statement that reports the income tax benefit of the net operating loss.

McDaniel and Associates reported the following amounts on its 2016 income statement:

$$\begin{array}{lc} &\textbf{Year Ended December 31, 2016}\\ \text{Net income}&\$60,500\\ \text{Income tax expense}&12,100\\ \text{Interest expense}&5,000\\ \end{array}$$

What was McDaniel's times-interest-earned ratio for 2016? a. 12.10 c. 13.10 b. 15.52 d. 14.52

Brower Co. is considering the following alternative financing plans:

$$\begin{array}{lrr} & \textbf { Plan 1 } & \textbf { Plan 2 } \\ \hline \text { Issue } 10 \% \text { bonds (at face value) } & \$ 4,000,000 & \$ 2,500,000 \\ \text { Issue preferred } \$ 2.50 \text { stock, } \$ 25 \text { par } & - & 3,000,000 \\ \text { Issue common stock, } \$ 10 \text { par } & 4,000,000 & 2,500,000 \end{array}$$

Income tax is estimated at 40% of income.

Determine the earnings per share of common stock, assuming income before bond interest and income tax is $2,000,000.

Brower Co. is considering the following alternative financing plans:

$$\begin{array}{lrr} & \text { Plan } 1 & \text { Plan } 2 \\ \hline \text { Issue } 10 \% \text { bonds (at face value) } & \$ 4,000,000 & \$ 2,500,000 \\ \text { Issue preferred } \$ 2.50 \text { stock, } \$ 25 \text { par } & - & 3,000,000 \\ \text { Issue common stock, \$10 par } & 4,000,000 & 2,500,000 \end{array}$$

Income tax is estimated at 40% of income.

Determine the earnings per share of common stock, assuming that income before bond interest and income tax is $2,000,000.

Draw the consumption function and label each axis. Show the effect of an increase in income on consumption spending. Does the change in income cause a movement along the consumption function or a shift of the consumption function? How would an increase in expected future income or an increase in household wealth affect the consumption function? Would these increases cause a movement along the consumption function or a shift of the consumption function? Briefly explain.