Jeremy,an American Citizen,earned $200,000 During 2014 While Employed in Switzerland

question 103

Multiple Choice

Jeremy,an American citizen,earned $200,000 during 2014 while employed in Switzerland.Jeremy is entitled to the maximum foreign-earned income exclusion.Jeremy also incurred $40,000 of deductible expenses attributable to the foreign-earned income.Jeremy may deduct how much in expenses?

• A)$0
• B)$19,840
• C)$20,150
• D)$40,000

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Definitions:

Make-To-Order

A manufacturing strategy where production starts only after an order is received, tailoring products to specific customer demand.

Finishing Department

The final stage in a manufacturing process where products undergo final touches, treatments, or packaging before being ready for sale.

Net Profit

The financial gain or loss a business makes after subtracting all expenses, taxes, and costs from total revenue.

Shadow Price

In linear programming, it refers to the value that represents the change in the optimal objective function value per unit increase in the right-hand side of a constraint.