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Fred currently earns $$10,500$ 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 $$13,500$ per month if he accepts the assignment. Assume that the

maximum foreign$-$earned income exclusion for next year is $$126,500.$

a$-2.$ If Fred's employer also provides hind free housing abroad $($cost of $$26,500),$ how much of the $$26,500$ is excludable from Fred's

income?

Please break it down so I can understand.