Janet Mothra, a U

question 53

Essay

Janet Mothra, a U.S. citizen, is employed by Caterpillar Corporation, a U.S. corporation. In May 2020, Caterpillar relocated Janet to its operations in Spain for the remainder of 2020. Janet was paid a salary of $350,000. As part of her compensation package for moving to Spain, Janet received a housing allowance of $55,000. Janet's salary was earned ratably over the 12-month period. During 2020 Janet worked 280 days, 168 of which were in Spain and 112 of which were in the United States. How much of Janet's total compensation is treated as foreign source income for 2020?

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Definitions:

Job

A position of employment where an individual performs assigned duties, usually in exchange for compensation.

Annual Performance Reviews

Formal evaluations conducted yearly to assess an employee's work performance, discuss achievements, and set future goals.

Experience Flow

Experience flow is a state of deep immersion and involvement in an activity, often leading to heightened enjoyment and fulfillment.

Experience of Flow

A highly focused mental state conducive to productivity and creativity, where an individual is fully absorbed and involved in the activity at hand.