Consider an island served by a single ferry company. There are two types of people who visit

the island, day-trippers who come in the morning to enjoy the island’s beaches on a Saturday or

Sunday (or sometimes on a weekday) and permanent summer residents who work in the city

during the week but come to the island on Friday night to spend the weekend and then leave on

Monday to return to work. The ferry has the following rate schedule: $6.50 for a same-day round

trip or $5.00 for a one-way trip. There are no round-trip savings for people who do not want to

travel on the same day.

a) Given the description of the two groups who visit the island, what kind of price

discrimination, if any, could work here?

b) What will be the price of a round-trip ticket for the permanent summer residents?

c) Is the rate schedule that the ferry company currently uses an effective price discrimination

device? Why or why not?

Chapter 2: Chapter 2 shows and discusses the gains from trade that can result when individuals, firms, or countries specialize in producing goods for which they have a comparative advantage, and trade those goods with others. Gains from specialization and exchange can be seen in many situations. For example, most people that we pay to do things for us (e.g. grow our food, cut our hair, tutor us, etc.) perform the task for a lower opportunity cost than we would bear if we were to do it ourselves. This is where the gain from trade that benefits both parties comes from, and is why it is rational for you to pay for the service. To show that you understand how comparative advantage works in the modern economy, please discuss a good or service you recently purchased and address the following prompts: What is the item or service, and how much did you pay for it? What is a reasonable estimate of how long it would take you to make the item or perform the service at the same quality level of the one you're purchased if you had been unable to buy it? You need to come up with a number of hours or days or years, or whatever time measurement you want, for how long it would take you. Don't try to avoid this. If you can't figure it out, pick another good or service. Who worked to get the money to pay for the item, and how long did they have to work to get the money? If your money came from the government, see how the government gets money page. Based on your answers to 2 and 3 above, was it rational to buy the good? Explain. Make sure you compare the time it would take you to make the good or perform the service (mentioned in part 2) and the amount of time that had to be worked to get the money (mentioned in part 3). It is only rational to buy something if you give up fewer resources working to earn money to pay than you would have if you made the good or perform the service yourself. If it turned out to be irrational, why did you buy it?

Ram Singh is employed by OM Inc., a public corporation, as an internal auditor. Information relating to his employment for the year 2019 is as follows:-

i.            In 2019 Ram received a salary of $130,000. The employer withheld $33,000 for income taxes, $2,700 for Canada pension contributions and $750 for Employment insurance. Other withholdings from the paycheck were $6,000 for contribution to the Company’s Registered Pension Plan, $600 for contributions to the Group Term Life Insurance, $1,400 for contribution to the Group Disability Plan.

The employer also contributed $6,000 to Ram’s RPP and $600 to the Group Term Life Insurance Plan.

ii.           Because Ram had to travel to various Company’s locations away from his regular workplace, the employer provided him with a yearly travelling allowance of $7,000.

iii.          OM provides three of its senior executives with an allowance to attend conventions of their choice. In 2019, Ram received $2,000 for this allowance and was not required to account for the costs. He attended one convention and incurred costs of $2,200.

iv.          Ram was provided with a car by the employer for use in business. The car was purchased in 2019.

Details relating to this car are as follows:-

                             Cost of car (including all taxes)………………………………………………$41,000

                             Operating cost paid by employer (including HST)……………………. ........ 8,400

                             Total kilometres driven…………………………………………………………15,000

                             Kilometres driven for employment purposes…………………………….......10,000

                             Re-imbursement to Company for use of car……………………….…….......$2,400

vi.          In June 2019, OM announced a new employee stock option plan. The plan allowed each employee to purchase 2,000 shares of OM at $14 per share. At the time of the announcement the shares were trading at $15 per share. On July 1^st, Ram purchased 1,000 of the shares when the shares were trading at $18 per share. On October 15^th of the same year, Ram exercised his rights and purchased the remaining 1,000 shares when the shares were trading for $20 per share.

In December Ram and his spouse wanted to go to Europe for Xmas and he sold 500 of the shares at $25 per share so that he can have funds for this trip.

Also, at the time of granting the option, the employer arranged with a local credit union to make loans available to the employees who wanted to buy the shares at a rate of 4%(fair market value of interest rates for the year 2019 was 5%). Ram took the opportunity and bought the shares.

vii.         OM introduced a holiday cruise award for executives who gave special service to the Company. Ram qualified and won the award in 2019. In March 2020, he and his spouse went on the cruise which cost $2,150. The value of the award was $3,000.

x.           Other non-cash perks received from the employer:-

                             Contributions to the R.P.P……………………………………………....$6,000

                             Contributions to a group R.R.S.P……………………………………...$2,000

                             Dental Plan valued at……………………………………………………$1,500

                             Mandatory employer-paid provincial health tax………………...........$1,700

                             Membership in the local golf club…………………………………….....$2,000

                             Hard hat and safety glasses……………………………………………….$ 450

viii.        Ram and his spouse were provided with the company’s condo in the Bahamas for one week holiday during the winter. Such accommodation during this peak period would have cost them $400 as opposed to $100 actually paid by him.

ix.          OM paid $1,000 to the Certified Public Accounting Association for Ram’s professional fees for the year. They also paid $600 for him to attend a conference on new accounting standards to be implemented in the current year.

x.           Ram also had income from investments as follows:-

              Interest earned on a joint bank account with his spouse…………………………..$3,000

              Interest on his R.R.S.P, account………………………………………………………$1,500

              Interest earned on his 2018 personal tax assessment……………………………..$ 2000

              Interest on Govt. of Cda. Treasury Bills………………………………………………..$600

              Cash dividends received from investments in a Canadian resident Corp……......$3,000

              Cash dividends received from Amazon, a U.S. public Corp………………………..$5,100

                (15% withholding taxes)

              Interest paid on money borrowed to buy shares of Amazon……………………….$4,000

xi.          In 2019, Ram gave to each of his two children, aged 5 and 7, $2,000 each of Ontario Savings bonds paying interest at 2% annually.

Required:-Following S3 of the ITA, calculate Ram’s Net Income for the year.

(Show all your work papers)

The following article below answer the following question:

A- What is the Article About it, and how it relates to the class?

B- Do you Agree or Disagree with the author?

C- Explain why do you Agree or Disagree.

NOTE:Support your response with reference or laws

article

In Information Letter 2012-0069, the IRS addressed whether a person can be an employee and an independent contractor at the same time while working for the same company. The person was working as a professional consultant on two separate consulting projects. The IRS concluded that each project should be examined separately, meaning that the same person could have a different status for each project.

In making a determination on whether a worker is an employee or independent contractor, the IRS is most concerned with federal withholding and payment of employment taxes. Code §3 121(d)(2) defines an employee as any individual who, under the common law rules applicable in determining the employer-employee relationship, has the status of an employee. Whether an individual is an employee under the common law rules is a question of fact to be determined after considering the facts and circumstances in a particular case.

The relationship of employer-employee generally exists when the employer has the right to direct and control the person not only as to the result to be accomplished by the work, but also as to the details and means by which that result is accomplished. The employer does not necessarily have to actually direct or control the manner in which the services are performed; it is sufficient if he or she has the right to do so. The designation or description of the relationship by the parties as anything other than that of employer and employee is generally immaterial.

In making the determination, the IRS will consider all evidence of control or autonomy. Relevant facts generally fall into three categories of evidence: behavioral controls, financial controls, and the relationship of the parties. Behavioral controls generally refer to the right to direct or control the work. Financial controls generally refer to whether the person can control the financial aspects of work. The relationship factor refers to the parties' agreement and how their relationship is represented to others.

If an individual provides services in two separate roles to the same business, the IRS separately examines the relationship between the worker and the business for each performance of services. Just as with any examination of worker status, the IRS will examine each relationship based on factors that fall into the three categories set forth above - behavioral controls, financial controls, and relationship of the parties. If an employer-employee relationship is found with regard to performance of services for only one role of the worker, remuneration with regard to only those specific services is subject to all FICA and income tax withholding requirements.

The IRS also noted that a business may file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, to request an IRS determination of the status of a worker. The request may cover a class of workers, an employee or an independent contractor. If the firm is requesting a determination for a particular class of worker, it should complete the form for one individual who represents the class whose status is in question.

Information Letter 2012-0069 is interesting because it clarifies that it is possible to have more than one status with the same employer. Although any determination will be fact-specific, it might still be rare that an employee could, for certain tasks, be considered an independent contractor.

For more information regarding employee or independent contractor status, see 391 T.M., Employment Status - Employee v. Independent Contractor.

When developing a framework moving from analyzing financial decisions with certainty to those with uncertainty, we make certain assumptions about the market conditions that must hold, as well as the properties of individual preferences (utility). Explain some of these assumptions and why they are important.

Provide a brief review about measures that should be taken and complied by individual doctors during their medical practice or procedures to identify, prevent and control healthcare-associated infections and to protect themselves from occupational exposures to bloodborne pathogens and other infectious pathogens.

Participants enter a research study with unique characteristics that produce different scores from one person to another. For an independent-measures study, these individual differences can cause problems. Briefly explain how these problems are eliminated or reduced with a repeated-measures study

Keeping the functions of water in living things in mind, describe both how too little or too much water can move an individual away from homeostasis. What happens to the structures of the body with too little or too much water intake?

Are whistle-blowers a friend or foe to an organization? Explain your answer. An individual speaks up and helps protect the organization through harm. Some employees refer to him as “the snitch.” What means can you ensure that the employee is protected from harm?

You deposited $75,000 in your mutual fund account today. You make no more deposits into your account, but 10 years from today your mutual fund account balance is $200,000. What annually compounded rate of return have you earned on your mutual fund over this time period?