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[The following information applies to the questionsdisplayed below.]

Fred currently earns $9,000 per month. Fred has been offered thechance to transfer for three to five years to an overseasaffiliate. His employer is willing to pay Fred $10,000 per month ifhe accepts the assignment. Assume that the maximum foreign-earnedincome exclusion for next year is $104,100.

a-1. How much U.S. gross income will Fredreport if he accepts the assignment abroad on January 1 of nextyear and works overseas for the entire year?

a-2. If Fred’s employer also provides him freehousing abroad (cost of $20,000), how much of the $20,000 isexcludable from Fred’s income?

b. Suppose that Fred's employer has offeredFred a six-month overseas assignment beginning on January 1 of nextyear. How much U.S. gross income will Fred report next year if heaccepts the six-month assignment abroad and returns home on July 1of next year?

c-1. Suppose that Fred’s employer offers Fred apermanent overseas assignment beginning on March 1 of next year.How much U.S. gross income will Fred report next year if he acceptsthe permanent assignment abroad? Assume that Fred will be abroadfor 305 days out of 365 days next year. (Do not roundintermediate calculations. Round your final answer to the nearestwhole dollar amount.)

c-2. If Fred’s employer also provides him freehousing abroad (cost of $16,000 next year), how much of the $16,000is excludable from Fred’s income? Assume that Fred will be abroadfor 305 days out of 365 days next year. (Use 365 days in ayear. Do not round intermediate calculations. Round your finalanswer to the nearest whole dollar amount.)