Allen Is an Employee of the Foreign Subsidiary of a United

question 16

Multiple Choice

Allen is an employee of the foreign subsidiary of a United States based company who lives and works in the United Kingdom. According to FATCA, how much of his wages may Allen exclude from
United States' taxes, according to 2019 guidelines?

• A) $46,500
• B) $79,850
• C) $105,900
• D) None

---

Definitions:

Bilateral Contract

An agreement involving two parties where each promises to perform an act in exchange for the other's act.

Return Promise

An agreement in a contract where one party promises to perform an action in response to the performance of a second party.

Objective Standard

An objective standard refers to a legal criterion that is based on factual measurements or external circumstances, rather than personal opinions or feelings.

Contractual Obligations

A legal duty that arises from agreements made between parties, requiring them to act or refrain from acting in certain ways.