15. A U.S. citizen worked in a foreign country for the period July 1, 2015 through August 1, 2016. Her

salary was $10,000 per month. Also, in 2015 she received $5,000 in dividends from foreign

corporations (not qualified dividends). No dividends were received in 2016. Which of the following is

correct?

PLEASE SHOW THE MATH AND PROVIDE EXPLINATION

a. The taxpayer cannot exclude any of the income because she was not present in the

foreign country more than 330 days in either 2015 or 2016.

b. The taxpayer can exclude a portion of the salary from U.S. gross income in 2015 and

2016, and all of the dividend income.

c. The taxpayer can exclude from U.S. gross income $60,000 salary in 2015, but in 2016 the

taxpayer will exceed the twelve-month limitation and, therefore, all of the 2016

compensation must be included in gross income. All of the dividends must be included

in 2015 gross income.

d. The taxpayer must include the dividend income of $5,000 in 2015 gross income, but the

taxpayer can exclude a portion of the compensation income from U.S. gross income in

2015 and 2016.

e. None of these.