NeNe Is an Accountant and U

question 4

Multiple Choice

NeNe is an accountant and U.S. citizen, who has accepted a permanent position in Madrid, Spain for a Spanish financial services company. This year, NeNe spent the entire year working in Madrid. NeNe's employer paid $40,000 of her Madrid housing expenses this year. What amount of the $40,000 housing payments may NeNe exclude?

• A)NeNe can exclude all of the housing payment because she worked more than 330 days overseas
• B)16,208
• C)23,792
• D)14,182
• E)None of her salary can be excluded from gross incomE.Since NeNe spent the entire year overseas, she may exclude the lesser of (a) $40,000 housing costs - $16,208 ($101,300 × .16) = $23,792 or (b) $14,182 ($101,300 × .14).Thus, she may exclude $14,182 of the housing costs paid by her employer.

---

Definitions:

Premarin

a medication derived from pregnant mare's urine, used mostly in hormone replacement therapy for menopause symptoms.

Progestogen

A class of steroid hormones that promotes gestation and is involved in the menstrual cycle and pregnancy.

Expulsion

The process of driving or forcing out something or someone from a place or situation.

Labor

The process of childbirth, especially the period from the start of uterine contractions to delivery.