signment/takeAssignmentMain.do?invoker38takeAssignmentSessionLocator-&inprogress3Dfalse еВook Tax Rate Schedule Employment-Related Exclusions (LO. 3) Boris is an unmarried systems specialist with a public accounting firm. During all of 2020, he is on temporary assignment in London. He pays $21,000 in British income tax on his $100,000 salary. Boris knows little about taxes and seeks your advice on the taxability of the salary he earns while in London, Write Boris a memorandum explaining the tax treatment of his London salary. Assume that Boris has no other income sources and that he does not itemize deductions. Refer to the Tax Rate Schedule table to answer the following question. (Hint: Standard deduction is $12,400.) Complete the memo. Round intermediate computations to two decimal places and final tax liability to the nearest dollar. If an amount is zero, enter "0". Boris, It is my understanding that you are currently working in London. I am assuming that it has been for 330 days within the 12 consecutive months v as this is required when dealing with foreign-earned income V your British foreign-earned income options. You have two options. The first is to include V in gross income, calculate the tax and, take a(n) foreign tax paid credit Under this option, your taxable income will be $ 87,600 V Under the 2nd option, you exclude up to $ 15,104 X of foreign-earned income. Under this option, your net tax would be s Feedback Previous Next Check My Work
signment/takeAssignmentMain.do?invoker38takeAssignmentSessionLocator-&inprogress3Dfalse еВook Tax Rate Schedule Employment-Related Exclusions (LO. 3) Boris is an unmarried systems specialist with a public accounting firm. During all of 2020, he is on temporary assignment in London. He pays $21,000 in British income tax on his $100,000 salary. Boris knows little about taxes and seeks your advice on the taxability of the salary he earns while in London, Write Boris a memorandum explaining the tax treatment of his London salary. Assume that Boris has no other income sources and that he does not itemize deductions. Refer to the Tax Rate Schedule table to answer the following question. (Hint: Standard deduction is $12,400.) Complete the memo. Round intermediate computations to two decimal places and final tax liability to the nearest dollar. If an amount is zero, enter "0". Boris, It is my understanding that you are currently working in London. I am assuming that it has been for 330 days within the 12 consecutive months v as this is required when dealing with foreign-earned income V your British foreign-earned income options. You have two options. The first is to include V in gross income, calculate the tax and, take a(n) foreign tax paid credit Under this option, your taxable income will be $ 87,600 V Under the 2nd option, you exclude up to $ 15,104 X of foreign-earned income. Under this option, your net tax would be s Feedback Previous Next Check My Work
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ssignment/takeAssignmentMain.do?invoker3&takeAssignmentSessionLocator=&inprogress%3Dfalse
еВook
Tax Rate Schedule
Employment-Related Exclusions (LO. 3)
Boris is an unmarried systems specialist with a public accounting firm. During all of 2020, he is on temporary assignment in London. He pays $21,000
in British income tax on his $100,000 salary. Boris knows little about taxes and seeks your advice on the taxability of the salary he earns while in
London, Write Boris a memorandum explaining the tax treatment of his London salary. Assume that Boris has no other income sources and that he
does not itemize deductions. Refer to the Tax Rate Schedule table to answer the following question.
(Hint: Standard deduction is $12,400.)
Complete the memo. Round intermediate computations to two decimal places and final tax liability to the nearest dollar. If an amount is
zero, enter "0".
Boris,
It is my understanding that you are currently working in London. I am assuming that it has been
for 330 days within the 12 consecutive months
v as this is required when dealing with foreign-earned income
options. You have two options. The first is to include
• v your British foreign-earned income
V in gross income,
calculate the tax and, take a(n) foreign tax paid credit
Under this option, your taxable income will be $
87,600 V.
Under the 2nd option, you exclude up to $
15,104 x of foreign-earned income. Under this option, your net tax would
be s
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Check My Work
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