Employment-Related Exclusions (LO. 3)

Boris is an unmarried systems specialist with a public accounting firm. During all of 2019, he is on temporary assignment in London. He pays $19,000in British income tax on his $97,000salary. Boris knows little about taxes and seeks your advice on the taxability of the salary he earns while in London. Write Boris a memorandum explaining the tax treatment of his London salary. Assume that Boris has no other income sources and that he does not itemize deductions.Refer to the Tax Rate Schedule table to answer the following question.

(Hint:Standard deduction is $12,000.)

Complete the memo.Round intermediate computations to two decimal places and final tax liability to the nearest dollar. If an amount is zero, enter "0".

Boris,

It is my understanding that you are currently working in London. I am assuming that it has been

as this is required when dealing with foreign-earned income options. You have two options. The first is to

your

in gross income, calculate the tax, and, take a(n)

.

Under this option, your taxable income will be $.

Under the 2nd option, you exclude up to $of foreign-earned income. Under this option, your net tax would be $