Question 4 Kim Dawson is employed by college. She has the following tax informat

Question

Question 4

Kim Dawson is employed by college. She has the following tax information. Kim is a full time employee but has a similar part items business. Kim was previously unemployed and was over paid in employment insurance payments. She is divorced and pay alimony. Kim also invests in the shares of the public corporations for capital appreciation.

                                                    Case A                                          Case B                                   Case C

Employment income.                                50,000                                  50,000                                  50,000

Capital gains                                          20,000                                   30,000                                   10,000                  

Capital loses                                      (30,000)                                (20,000)                                (30,000)

Alimony payments                            10,000                                   10,000                                   10,000

Ei payback                                        5,000                                     5,000                                     5,000

Business income (Losses)               10,000                                   (20,000)                                40,000

Net capital losses (other years)            (15,000)                                (20,000)                                (5,000)

Required         

Calculate Kim’s Net income for tax purposes using the criteria provided under Sec. 3 of the ITA show all details

Calculate Kim’s Capital losses carried forward

Calculate Kim’s Non capital losses carried forward

                                                    Case A                                          Case B                                   Case C

Employment income.                                50,000                                  50,000                                  50,000

Capital gains                                          20,000                                   30,000                                   10,000                  

Capital loses                                      (30,000)                                (20,000)                                (30,000)

Alimony payments                            10,000                                   10,000                                   10,000

Ei payback                                        5,000                                     5,000                                     5,000

Business income (Losses)               10,000                                   (20,000)                                40,000

Net capital losses (other years)            (15,000)                                (20,000)                                (5,000)

Explanation / Answer

Ans-

Fifteen percent. The higher wages that unions achieve reduce
employment, displace workers, and increase the marginal revenue
product in the union sector.
Labor supply increases in the
nonunionized sector, reducing wages and decreasing marginal
revenue production there. Because of the lower nonunion marginal
revenue
product, the workers
added in the nonunion
sector
contribute
less to GDP than they
would
have
in the unionized
sector.
The gain of GDP in the nonunionized sector does not offset
the loss of GDP in the unionized
sector so there is an overall
efficiency loss.
35-7 The labor demand and supply data in the following table

relate to a single occupation. Use them to answer the questions
that follow. Base your answers on the taste-for-discrimination
model.
Quantity of Quantity of
Hispanic labor Hispanic Hispanic labor
demanded, wage supplied,
thousands rate thousands
24 $16 52
30 14 44
36 12 36
42 10 28
48 8 20

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