Question 1 - Wendy is a single individual who works for MTP, Inc. During the entire calendar year she works in France and pays French taxes of $8,000 on her $90,000 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 by using the alternative selected?

Question 2 - Jennifer, age 40, has accumulated $40,000 in her traditional IRA. She would like to withdraw $22,000 from her IRA to pay for her daughter's college expenses. She plans to use $15,000 for tuition and $7,000 for room and board. Write a letter to Jennifer stating the tax implications of her proposed withdrawal.