International Scenario 3: Retest Questions Directions Refer to the scenario information for Alan and Maria Newport, beginning on page 136. 7. The amount of Alan's foreign eamed income exclusion is $ 8. Maria is required to report the $35,000 in wages from the Royal Suites Hotel a. True b. Faise 9. Which sources of Alan and Maria's income are classified as general category income for the Foreign Tax Credit? a. Wages from the London Tourist Company b. Wages from Royal Suites Hotel c. Wages from the U.S. Embassy d. All of the above 10. Alan is able to exclude his wages from the U.S. Embassy because he is a civilian employee of the U.S.govemment. a. True b. False 11. What eligibility requirements must Alan meet in order to be able to exclude his foreign earned income? a. He must meet the bona fide residence test or physical presence test b. He must have income that qualifies as foreign earned income. c. His tax home must be in a foreign country. d. All of the above 12. Maria is required to file Form 1116, Foreign Tax Credit, to claim the credit for the foreign taxes paid on her wages. a. True b. False 13. What is the amount of federal income tax withheld on Alan's Form 1040? a. $746.17 b. $3,190.52 c. $3.722.00 d. $5.146.00 14. If Alan qualifies to exclude his foreign earned income, he must file a Form 2555, Foreign Eamed Income, with his tax return. a. True b. False 15. To convert a sum of money into US dollars, divide the amount of foreign currency by the exchange rate for the foreign currency to one US. dollar, a. True b. False