Catherine is a u. s. citizen who is employed by dsc, inc., a global company. beginning on august 1, 2018, catherine began working in augsburg, germany. she worked for 153 days of 2018. she worked there until march 31, 2019, when she transferred to kamnik, slovenia. she worked in kamnik for the remainder of 2019. her salary for the first seven months of 2018 was $225,000, and it was earned in the united states. her salary for the remainder of 2018 was $165,000, and it was earned in augsburg. catherine's 2019 salary from dsc was $425,000, with part being earned in augsburg and part being earned in kamnik.
assume the 2019 indexed statutory amount is the same as the 2018 indexed amount. assume a 365-day year.
when required, round any fractions out to four decimal places. round final answers to the nearest dollar.
a. catherine may exclude $ from her gross income for 2018.
b. catherine may exclude $ from her gross income for 2019.

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u.s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht.a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?