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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
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 $112,000. Required: a-1. How much U.S. gross income will Fred report if he accepts the assignment abroad on January 1 of next year and works overseas for the entire year? a-2. If Fred's employer also provides him free housing abroad (cost of $20,100), how much of the $20,100 is excludable from Fred's income? b. Suppose that Fred's employer has offered Fred a six-month overseas assignment beginning on January 1 of next year. How much U.S. gross income will Fred report next year if he accepts the six-month assignment abroad and returns home on July 1 of next year? c-1. Suppose that Fred's employer offers Fred a permanent overseas assignment beginning on March 1 of next year. How much U.S. gross income will Fred report next year if he accepts the permanent assignment abroad? Assume that Fred will be abroad for 305 days out of 365 days next year. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. c-2. If Fred's employer also provides him free housing abroad (cost of $16,050 next year), how much of the $16,050 is excludable from Fred's income? Assume that Fred will be abroad for 305 days out of 365 days next year. Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B Required C1 Required C2 How much U.S. gross income will Fred report if he accepts the assignment abroad on January 1 of next year and works overseas for the entire year? Income reported $ 8,000 Required A1 Required A2 >
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