Problem $5-62($LO $5-3)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Fred currently earns $$9,500$ per month. Fred has been offered the chance to transfer for three to five years to an overseas affiliate. His employer is willing to pay Fred $$12,500$ per month if he accepts the assignment. Assume that the maximum foreign$-$earned income exclusion for next year is $$120,000.$

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.

C$2$ If Fred's employer also provides him housing abroad $($cost $20,250$ next year$),$how much of the $20,250$ 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.