David, an Employee of Lima Corporation, Is a U

question 147

Multiple Choice

David, an employee of Lima Corporation, is a U.S. citizen and the regional sales manager for South America. His office is in Miami and he spends nine months each year on business in South America. Which of the following statements about the treatment of his income from Lima Corporation is correct?

• A)He must include his Lima income in his gross income and is not allowed a tax credit for any South American taxes paid.
• B)He has the option of either excluding $104,100 of his Lima income or taking a tax credit for the South American taxes paid.
• C)Because he is in South America only nine months of the year, he is only allowed to exclude $75,975 of Lima income.
• D)Because he is in South America only nine months of the year, he is not allowed to exclude any of his Lima income, but he can take a tax credit for any South American taxes paid.

---

Definitions:

Hyphenated Canadian

A term used to describe Canadians who identify with both their Canadian nationality and their ethnic or cultural heritage, using a hyphen to connect them.

Host Culture

The dominant culture or social environment in which an immigrant, foreign visitor, or minority group is immersed and must adapt to.

Immigrants' Cultures

The traditions, practices, languages, and values brought by immigrants to a new country, contributing to the cultural mosaic of the host society.

Ethnic Enclave

An area, often within a city, with a high concentration of a particular ethnic group, which maintains its distinct cultural identity.