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.$

Problem $5-62$ Part a$-2($Algo$)$

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

Amount to be excludedFred 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.$

Problem $5-62$ Part b $($Algo$)$

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?

Income reportedFred 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.$

Problem $5-62$ Part c$-1($Algo$)$

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: Round your intermediate calculations and final answer to the nearest whole dollar amount.

Income reportedFred 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.$

Problem $5-62$ Part c$-2($Algo$)$

c$-2.$ If Fred's employer also provides him free housing abroad $($cost of $$20,750$ next year$),$ how much of the $$20,750$ is excludable from Fred's income? Assume that Fred will be abroad for $305$ days out of $365$ days next year.

Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.

Amount to be excluded

answer all