Boris knows little about taxes and seeks your advice on the


1. Joan is a single individual who works for Big Petroleum, Inc. During all of 2010, she is stationed in West Africa. She pays West African taxes of $19,000 on her Big Petroleum salary of $88,000. Her taxable income without considering her salary from Big Petroleum is $36,000. How should Joan treat the salary she receives from Big Petroleum on her 2010 U.S. tax return?

2. Boris is an unmarried systems specialist with a public accounting firm. During all of 2010, he is on temporary assignment in London. He pays $21,000 in British income tax on his $90,000 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.

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Accounting Basics: Boris knows little about taxes and seeks your advice on the
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