Problem $5-49($LO$.2)$

George is a U$.$S$.$ citizen who is employed by Hawk Enterprises, a global company. Beginning on June $1,2024,$ George began working in London $($for a total of $214$ days in $2024).$ He worked there until January $31,2025,$ when he transferred to Paris. He worked in Paris for the remainder of $2025.$ His salary for the first five months of $2024$ was $$100,000,$ and it was earned in the United States. His salary for the remainder of $2024$ was $$175,000,$ and it was earned in London. George's $2025$ salary from Hawk was $$300,000,$ with part being earned in London and part being earned in Paris.

Assume the $2025$ indexed amount is the same as the $2024$ indexed amount. Assume $365$ days in $2024$ and $366$ days in $2025.$

a$.$ Is George eligible for the foreign income exclusion for $2024$ and$/$or $2025?$

Feedback

${?}^7$ Check My Work

Congress has provided alternative forms of relief from taxes on foreign earned income. The taxpayer can elect either $(1)$ to include the foreign income in their taxable income and then claim a credit for foreign taxes paid or $(2)$ to exclude the foreign earnings from their U$.$S$.$ gross income $($the foreign earned income exclusion$).$

Carry any fractions out to four decimal places. Round your final answers to the nearest dollar.

b$.$ Determine George's gross income in $2024$ and $2025.$

$2024$: $$

$2025$: $ $173,500$