Megan Accepts an Assignment Working in Germany for the First

question 17

Multiple Choice

Megan accepts an assignment working in Germany for the first 9 months of 2018 from Ferguson Corporation. Ferguson Corporation paid Megan's salary of $78,000 plus an additional $7,000 bonus. Megan paid $5,000 to the German government in taxes on this income. During 2018, Megan also earned $9,000 of interest income from corporate bonds and $4,000 of dividend income from U.S. corporations. The maximum foreign earned income exclusion for 2018 is $103,900. How much should Megan include in her gross income on her U.S. tax return for 2018?

• A) $98,000
• B) $20,000
• C) $13,000
• D) zero

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Definitions:

Prototype

A prototype is an early sample, model, or release of a product built to test a concept or process.

Broca's Aphasia

A neurological condition characterized by difficulties in producing speech due to damage to Broca's area in the frontal lobe of the brain, often leaving the individual able to understand language but with impaired speaking ability.

Impaired Recall

A diminished ability to remember or retrieve previously learned information.

Nouns

Words used to identify any of a class of people, places, or things.