Fred currently earns $9,000 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 $10,000 per month if he accepts the assignment. Assume that the maximum foreign earned income exclusion for next year is 102,100.

How much U.S. gross income (taxable) from compensation will Fred report if he accepts the assignment abroad on January 1 of next year and works overseas for the entire year?

How much of the compensation income will be excluded?

If Freds employer also provides him free housing abroad (cost of $20,000), how much of the $20,000 is excludible from Freds income?

How much of the housing is includible (taxable)?