Question: Fred currently earns $10,100 per month. Fred has been offered the chance to transfer for three to five years to an overseas affiliate. His

Fred currently earns $10,100 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 $13,100 per month if he accepts the assignment. Assume that the maximum foreign-earned income exclusion for next year is $120,000. Problem 5-72 Part a-2 (Algo) a-2. If Fred's employer also provides him free housing abroad (cost of $26,100), how much of the $26,100 is excludable from Fred's income? Answer is complete but not entirely correct. Amount to be excluded $ 26,100 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? Answer is complete but not entirely correct. Income reported $ 78.600 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 reported c-2. If Fred's employer also provides him free housing abroad (cost of $20,550 next year), how much of the $20,550 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
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a2 If Freds employer provides him with free housing abroad cost of 26100 the amount that is excludable from Freds income depends on the maximum foreignearned income exclusion for the year The maximum ... View full answer
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