Foreign-Earned Income Exclusion. On January 5, 2017 Rita left the United States for Germany, where she had accepted an appointment as vice president of foreign opera- tions. Her employer, USA Corporation, told her the assignment would last about two years. Rita decided not to establish a permanent residence in Germany because her as- signment was for only two years. Her salary for the year is $306,300. Rita incurred travel, transportation, and other related expenses totaling $6,000, none of which are reimbursed.

a. What is Ritas foreign-earned income exclusion?

b. How much may she deduct for travel and transportation?