Faye Earns $100,000 of AGI,including $90,000 of Salary and $10,000

question 24

Multiple Choice

Faye earns $100,000 of AGI,including $90,000 of salary and $10,000 of interest income.Faye does itemize her deductions.The miscellaneous category of her itemized deductions consists of $1,500 of unreimbursed employee business expenses and a $900 fee paid for investment advice.Faye has paid $11,000 of interest expense on a loan used to purchase stocks.How much of the $11,000 interest expense can be deducted this year?

• A)$11,000
• B)$10,000
• C)$9,100
• D)$9,600

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Definitions:

Just Reason Doctrine

A legal principle that requires an employer to provide a fair and genuine reason for disciplining, dismissing, or making significant changes to an employee's contract.

Flexible Benefits

A type of employee benefits plan that allows workers to choose from a variety of pre-tax benefit options based on their personal needs.

Benefit Packages

A collection of non-wage compensations provided to employees in addition to their normal wages or salaries.

Compensation Time Benefits

are benefits allowing employees to take time off instead of receiving overtime pay for extra hours worked.