Hank Is a U

question 61

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. (rounded to the nearest one-hundred dollars) ?

• A) Hank can exclude his entire salary because he worked more than 330 days overseas
• B) $102,000.
• C) $51,200
• D) $103,900.
• 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:

Subsidiary

A company that is completely or partly owned and wholly controlled by another company, known as the parent company.

Home-Country Nationals

Individuals who work for an organization or a subsidiary in their native country.

International Expansion

The process by which a company extends its business operations beyond its home country through establishing a presence in foreign markets.

Third-Country National

An individual employed in a country who is neither a citizen of that country nor of the country where the hiring organization is headquartered.