NeNe Is an Accountant Who Works for a Multinational Firm

question 44

Multiple Choice

NeNe is an accountant who works for a multinational firm this year and spent the entire year working overseas.NeNe's employer paid $40,000 of her overseas 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)15,616
• C)24,384
• D)13,664
• E)None of her salary can be excluded from gross income because NeNe must reside overseas for two consecutive years to receive an exclusion.

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Definitions:

Premium Amortized

The process of gradually writing off the initial cost of a premium over the period of the bond to match it with the interest earned.

Interest Cost

The cost incurred by an entity for borrowing funds, essentially the price paid for the use of borrowed money.

Bonds Issued

Debt securities sold by corporations or governments to investors to raise capital, requiring periodic interest payments and repayment of principal at maturity.

Bonds at Discount

Bonds issued below their face value, where the difference between the issue price and the face value represents the interest.