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Poalo, a U.S. citizen living in Rome, Italy, for the last two and one half years,...

Poalo, a U.S. citizen living in Rome, Italy, for the last two and one half years, earns a salary of $140,000 in 2020. Poalo's housing costs are $26,000 per year, which is reasonable. How much can Poalo exclude from income? (LABEL AND SHOW ALL WORK AND CALCULATIONS)

A) $104,100

B) $112,444

C) $116,384

D) $125,000

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