Q4&5

In 2022, Mitchell, an employee at Arrow Corp., paid $1,000 for an airline ticket for a business trip. Mitchell's employer reimbursed Mitchell for the entire $1,000 expense. Mitchell's employer's reimbursement policy required that Mitchell properly substantiate the expense through the submission of an expense report with receipt. The reimbursement plan also requires return of any excess reimbursement or allowance. How does Mitchell treat the $1,000 expense and $1,000 reimbursement for tax purposes? What if the company's reimbursement policy did not require Mitchell to submit any receipts or substantiation of the expense to obtain reimbursement? Diane, single and age 25 , earned wages of $50,000 in 2022 . This was her only income. Diane wants to contribute $6,000 of her earnings to an IRA (either traditional or Roth). Diane anticipates leaving the funds in her IRA until she is at least 60 years old. Why might Diane want to consider a traditional IRA? How would a traditional IRA contribution affect Diane's AGI? Why might Diane want to consider a Roth IRA? How would a Roth IRA contribution affect Diane's AGI? In 2022, Mitchell, an employee at Arrow Corp., paid $1,000 for an airline ticket for a business trip. Mitchell's employer reimbursed Mitchell for the entire $1,000 expense. Mitchell's employer's reimbursement policy required that Mitchell properly substantiate the expense through the submission of an expense report with receipt. The reimbursement plan also requires return of any excess reimbursement or allowance. How does Mitchell treat the $1,000 expense and $1,000 reimbursement for tax purposes? What if the company's reimbursement policy did not require Mitchell to submit any receipts or substantiation of the expense to obtain reimbursement? Diane, single and age 25 , earned wages of $50,000 in 2022 . This was her only income. Diane wants to contribute $6,000 of her earnings to an IRA (either traditional or Roth). Diane anticipates leaving the funds in her IRA until she is at least 60 years old. Why might Diane want to consider a traditional IRA? How would a traditional IRA contribution affect Diane's AGI? Why might Diane want to consider a Roth IRA? How would a Roth IRA contribution affect Diane's AGI