Ophra is a cash-basis taxpayer who is employed in the publishing industry. This year her employer informed her that because of h
er outstanding performance she is entitled to a free world cruise. Ophra asked her employer to issue the cruise tickets to her parents, and he complied with this request. Identify the principle that will determine whether Ophra or her parents are taxed on the value of the cruise tickets:
An assignment of income is a term that refers to an attempt to limit tax evasion. This concept is often used by taxpayers, like Ophra, when they feel it is necessary to transfer a trivial burden to someone else, as Ophra wants to do, by passing the cruise tickets she has earned to her parents.
Self-serving bias as described by the social psychologist refers to the tendency of the people to give themselves the credit for the positive events and blame external factors for the negative actions. For example, a director gives himself the credit for the success of his movie but if it fails he blame actors for it.
The mere exposure effect also called the familiarity effect occurs when an individual begins like and grow tenderness towards something They are use to or familiar with. In the example in the question, Kathy begins to feel affection for the bus driver as she has become familiar with him havingvtravelled with him for over 3 months
