
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:George is a U.S. citizen who is employed by Hawk Enterprises, a global company. Beginning on June 1, 2022, George began working in
London (for a total of 214 days in 2022). He worked there until January 31, 2023, when he transferred to Paris. He worked in Paris the
remainder of 2023. His salary for the first five months of 2022 was $100,000, and it was earned in the United States. His salary for the
remainder of 2022 was $175,000, and it was earned in London.
George's 2023 salary from Hawk was $300,000, with part being earned in London and part being earned in Paris.
Assume the 2023 indexed amount is the same as the 2022 indexed amount. Assume 365 days in 2022 and 365 days in 2023.
a. Is George eligible for the foreign income exclusion for 2022 and/or 20237
Both years
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Congress has provided alternative forms of relief from taxes on foreign earned income. The taxpayer can elect either (1) to include the
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. gro
(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 2022 and 2023)
2022:
2023:
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