Fred currently earns $10,900 per month. Fred has been offered the chance to transfer for three to five years to an overseas affiliate. His employer is willing to pay Fred $11,900 per month if he accepts the assignment. Assume that the maximum foreign-earned income exclusion for next year is $105,900.

rev: 02_17_2020_QC_CS-200928

c-2. If Freds employer also provides him free housing abroad (cost of $16,950 next year), how much of the $16,950 is excludable from Freds income? Assume that Fred will be abroad for 305 days out of 365 days next year. (Use 365 days in a year. Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)

What's the amount to be excluded?