Hank Is a U

question 122

Multiple Choice

Hank is a U.S. citizen and is doing a three to six-year assignment as a sales executive in Paris for a French company, which began this year. Hank earned $109,500 working for the French company this year but only lived in France for 180 days (out of 365 days) . He will live full-time in France next year. What amount of Hank's $109,500 salary this year will he be allowed to exclude from gross income in the U.S? (Round your answer to the nearest one-hundred dollars) .

• A) Hank can exclude his entire salary because he worked more than 330 days overseas.
• B) 50,351.
• C) 102,100.
• D) 102,000.
• E) None of his salary can be excluded from gross income because Hank must reside overseas for the entire year.

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Definitions:

Treasury Stock

Represents the shares that have been issued and subsequently reacquired by the corporation, not yet retired.

Par Common Stock

The face value of a share of stock as stated in the corporate charter.

Cost Method

An accounting method used to value inventory or investments at their original purchase cost.

Treasury Stock

Shares initially offered by a company and then purchased again by that company, lowering the volume of shares that are actively traded on the market.