1.Apply the tax benefit rule to determine the amount of the state income tax refund included in gross income in 2020. Myrna and Geoffrey filed a joint tax return in 2019. Their AGI was $106,825, and itemized deductions were $25,000, which included $20,000 in state income tax and no other state or local taxes. In 2020, they received a $12,000 refund of the state income taxes that they paid in 2019. The standard deduction for married filing jointly in 2019 was $24,400.

2.Helen spent the last 95 days of 2020 in a nursing home. The cost of the services provided to her was $28,500 ($300 per day). Medicare paid $8,800 toward the cost of her stay. Helen also received $14,360 of benefits under a long-term care insurance policy she purchased. Assume that the Federal daily excludible amount is $380What is the effect on Helen's gross income? The amount of her exclusion is $fill in the blank 1 and the amount included in her gross income is $fill in the blank 2

3.Mio was transferred from New York to Germany. He lived and worked in Germany for 340 days in 2020. Mio's salary for 2020 is $190,000.Assume a 366-day year. In your computation, round any division to four decimal places before converting to a percentage. For example, 0.473938 would be rounded to 0.4739 and converted to 47.39%. If required, round your final answer to the nearest dollar. What is Mio's foreign earned income exclusion?