11. Your friend Mark suggested that you should open an individual retirement account. He said in an IRA is a great way to save because you do not have to pay tax on the income from the investment when you get a tax deduction for your contribution. Is Mark correct? Explain. 21. Tom is 68 years old. His employer pays the premiums for group term life insurance coverage of $110,000. The cost for Tom’s coverage is $3000. a. if the plan providing us coverage is non-discriminatory and Tom is not a key employee, how much gross income does Tom have? b. How does your answer to (a) change if Tom is a key employee? c. if the plan is discriminatory, but Tom is not a key employee, what is Tom’s gross income? d. How does your answer to (c) change if Tom is a key employee? 31. Nick, 853, is single and has AGI of $68,000. He contribute $5000 to his IRA in 2019. a. How much can Nick deduct if he’s not covered by an employer sponsored a qualified retirement plan? b. How much can Nick deduct if he is covered by an employer sponsored qualified retirement plan? 33. Jennifer, age 35, is single and an active participant in her employers qualified retirement plan. Compute the maximum Roth IRA contribution that she can make in 2019 if a. Her adjusted gross income is $140,000 b. Her adjusted gross income is $59,000 c. Her adjusted gross income is $38,000 and she makes a $2000 contribution to a traditional IRA. 34. Carrie owns a business that she operates as a sole proprietor ship. The business had a net profit of $25,000 in 2019. This is Carrie’s only earned income. a. How much must she pay for self-employment taxes? b. How much can she deduct on her tax return? c. If the business had a net loss of $10,000 (instead of a $25,000 profit), how much in self-employment taxes must Carrie pay? 37. George has $96,200 in salary from his full-time position and $43,000 in net income in 2019 from his sole proprietor ship. What is his self-employment tax? What portion of this can he deduct? 41. Wendy is a single individual who works for MTP, Inc. During the entire calendar year, she works in France and pays French taxes are $8000 on her $95,000 salary. Her taxable income without considering her salary from MTP is $10,000. Should Wendy claim the income exclusion or tax credit and how much tax does she save using the alternative selected? PLEASE SHOW ALL WORK!