Is the accountant in trouble? Does the taxpayer have any possible penalty exposure?Discuss

Description

ESSAY 9

John is a writer who writes children’s books. John asks the accountant to file his income tax returns. He hands the accountant approximately $400 worth of restaurant bills. He tells the accountant that the receipts are for deductible business meals. The accountant does not inquire further and files a return claiming the meals as ordinary and necessary business expense. The writer is audited and tells the Service that he thought the meals were deductible because he worked on his book in the restaurant while he was eating the meals. The Office of Professional Responsibility calls the accountant and asks him to explain his actions. Is the accountant in trouble? Does the taxpayer have any possible penalty exposure?

NOTE:

** the prepare would have some possible exposure due to the fact he didn’t do any due diligence to inquired about client (writer) meals expend. He can have a penalty under code section U.S. Code § 6694 – Understatement of taxpayer’s liability by tax return preparer we can referent “(2)

Any substantial understatement of income tax.”

** we can also explain our client that he can get penalty under code section 6662

** Under Code section Internal Revenue Code, § 274. Shows the allowance and disallowance only 50% it is possible to be deduct meals 50% if these expense are considered a reasonable and necessary expense for business.

Are the statements in the paragraph below correct or incorrect? Explain.

Are the statements in the paragraph below correct or incorrect? Explain. The answer must include one mathematical expression, and not more than one.
“Consider the Burdett-Mortensen model of on-the-job search studied in lectures. If the assumption of on-the-job search is removed, then it is not possible to write a correct equal profits condition. As a result, the equilibrium wage distribution would be very different, although it may still have a range of wages in its support”.

How did Sub-Prime Mortgages impact the financial markets?Discuss

1. How did Sub-Prime Mortgages impact the financial markets?

2. How does International Trade impact on employment in the United States?

3. What is the government’s role in increasing employment

4. How is the United States economy different from other economies?

5. How have Global Labor Markets changes impacted United States employment

6. What was the major impact on business during the pandemic?

Distinguish between ‘shut down’ and industry exit by firms and explain the circumstances determining each case.

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Answer ONE of the following (max 1500 words):

Please choose either question 1 or 2

1. Compare and contrast the equilibria and efficiency implications of competitive markets and those markets where government intervenes. What justification therefore can be made for the use of taxes and subsidies and what are the implications of these policy instruments for market efficiency?

2. i) Distinguish between ‘shut down’ and industry exit by firms and explain the circumstances determining each case. (60marks)

ii) Outline the specific impact of highly capital-intensive technology on the shut down and exit decisions. (40 marks)

This is an exam replacement pls meet the deadline

Write an equation that summarises the relations between the marginal rate of substitution, relative prices and the marginal rate of transformation in equilibrium for an economy with exchange and production of food (F) and clothing (C).

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Assignment Guidelines

Part A (40% of the marks)

Consider an economy with two consumers, Indigo and Jamal, who each have two tradable goods: food and clothing.

1. State the first and second theorems of welfare economics. Explain the implications of these theorems for the use of competitive markets to distribute goods between Indigo and Jamal and for the use of competitive markets more generally. (8 marks)

2. Draw an Edgeworth exchange box for food on the horizontal axis and clothing on the vertical axis for Indigo and Jamal. On your diagram, illustrate Indigo’s and Jamal’s preferences for food and clothing using an indifference curve map for each consumer, showing at least two indifference curves for each. With the aid of these indifference maps, show also a contract curve and explain its economic significance. Make sure you label all the elements of your diagram. (8 marks)

3. Assume an initial endowment in which Indigo has most of the food and Jamal has most of the clothing. Reproduce your diagram for Question 2, and show this initial endowment and the core of this two-person exchange economy. Fully label your diagram, including the initial endowment and the core. Explain the economic significance of the core. (8 marks)

4. Now reproduce two versions of your diagram from Question 3. Use one diagram to show a disequilibrium price (budget constraint) and excess demand for food, and use the second to show a different set of relative prices for food and clothing in which supply is equal to demand. Explain in full what your diagrams show. (8 marks)

5. Write an equation that summarises the relations between the marginal rate of substitution, relative prices and the marginal rate of transformation in equilibrium for an economy with exchange and production of food (F) and clothing (C). Explain in full these relations and illustrate your answer with a fully labelled and explained production possibility frontier (PPF) diagram with food on the horizontal axis and clothing on the vertical axis. (8 marks)

Word limit: 800 words

Part B (60% of the marks)

Government has three primary functions. It should provide for military defense of the nation. It should enforce contracts between individuals. It should protect citizens from crimes against themselves or their property. When government – in pursuit of good intentions – tries to rearrange the economy, legislate morality, or help special interests, the cost comes in inefficiency, lack of motivation, and loss of freedom. Government should be a referee, not an active player.

(M. Friedman, 1979)

Using economic theories discussed in Block 3, and providing examples, critically discuss Friedman’s claim that inefficiency results from active Government intervention.

Word limit: 1500 words

(60 marks)

Student notes

Part A

Always use clearly and fully labelled diagrams in your answers to all questions. This means that if you draw a line or a point it should be explained somewhere, preferably on the diagram itself or in a key below if space does not permit.

Part A of this TMA aims to help you to consolidate and demonstrate your understanding of key aspects of general equilibrium analysis, drawing on your study of Chapter 8. You may also find it helpful to look back at the explanation of indifference maps in Chapter 2, Section 2. Question 1 is about the first and second theorems of welfare economics and relates to material in Chapter 8, Section 6. Questions 2 and 3 are about exchange, the core and Pareto efficiency, which are discussed in Chapter 8, particularly Section 3. Question 4 is about the importance of price adjustment for the achievement of market equilibrium, particularly in exchange, and relates to the material in Chapter 8, Section 4. Question 5 is about relations between price consumption and production in a perfectly competitive equilibrium, and is discussed in Chapter 8, Section 5.

Write a chapter that summarizes the entire report, and write your thoughts thoroughly.

Foreign Geography Economic Geography Final Report Deadline: Monday, January 31, 2022, 5:00 p.m.

Title: “Economic Geography of ” (e.g. “Economic Geography of the United States of America”, “Economic Geography of Australia”)

The target country cannot be Canada. Any other country is acceptable.

Content:
(1) Please write about the economic geography of one country. (Even if you are making a comparison among several countries, please specify one central country.)

(2) Think about how to organize the chapters by labeling them with numbers and make the report easy to read. (Even if you compare several countries, please specify one central country.)

(3) At the end of the report, please write a chapter that summarizes the entire report, and write your thoughts thoroughly. (How much thought you have given to this is also a point for evaluation.)

(4) As in the class, please make an effort to connect knowledge from various fields, not just geography.

(5) In addition to the text, please use diagrams, tables, and graphs in your report. In particular, try to use at least one map.

(6) Please make sure to write down your references. If you are writing a paper using a book, article, website, etc., be sure to write down what you cited and in what section. For figures, tables, etc., clearly indicate from what source the figure was reproduced and what it was created based on. If you fail to cite references, you will be given a failing grade in the worst case.

When quoting a document in the text, it may be easier to understand by saying “Here, reference X states as follows ….”.

The number of words is not specified, but because we must include labeled chapters, I would think at least 650 words would be needed. Please let me know if more words may be needed to make it a university level final report. I would appreciate it if you could refrain from using words such as “I” because it would make this too subjective.