Select the correct answer.

mr. and mrs. khan paid interest on their mortgage this year. they also had deductible home-related expenses. the interest and expenses total an amount greater than the standard deduction. which action can they take to reduce their income tax liability?

a.
they can use the interest expense as a credit to reduce the tax they owe.
b.
they can itemize deductions and deduct the interest expense.
c.
they can request a reimbursement of the interest expense from the irs.
d.
they can add the interest expense to their taxable income.
e.
they can reduce their mortgage payment next year by the amount of interest they paid.

Why does the united states government provide tax breaks related to the amount of money companies spend on research and development? a. to provide incentives for companies to conduct research and development to allow antitrust authorities b. to challenge joint research efforts c. to protect the right of inventors d. to produce and sell their inventions e. to involve less government scrutiny than a government funded project

9. tax types: taxes are classified based on whether they are applied directly to income, called direct taxes, or to some other measurable performance characteristic of the firm, called indirect taxes. identify each of the following as a “direct tax,” an “indirect tax,” or something else: a. corporate income tax paid by a japanese subsidiary on its operating income b. royalties paid to saudi arabia for oil extracted and shipped to world markets c. interest received by a u.s. parent on bank deposits held in london d. interest received by a u.s. parent on a loan to a subsidiary in mexico e. principal repayment received by u.s. parent from belgium on a loan to a wholly owned subsidiary in belgium f. excise tax paid on cigarettes manufactured and sold within the united states g. property taxes paid on the corporate headquarters building in seattle h. a direct contribution to the international committee of the red cross for refugee relief i. deferred income tax, shown as a deduction on the u.s. parent’s consolidated income tax j. withholding taxes withheld by germany on dividends paid to a united kingdom parent corporation

True or false: a fitted model with more predictors will necessarily have a lower training set error than a model with fewer predictors.