Leslie,who Is Single,finished Graduate School This Year and Began Repaying

question 42

Multiple Choice

Leslie,who is single,finished graduate school this year and began repaying her student loan.The proceeds of the loan were used to pay her qualified higher education expenses.She has not received any type of educational assistance or scholarships.The amount of interest paid during the year amounted to $3,800.What is the amount and classification of her student loan interest education deduction if her modified AGI is $40,000?

• A)$2,500 for AGI
• B)$2,500 from AGI
• C)$3,800 for AGI
• D)$3,800 from AGI

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Definitions:

Bankruptcy Code

The collection of laws and regulations that govern the process of bankruptcy in the United States.

Voluntary Liquidation

The process of dissolving a company by its own decision, distributing its assets to creditors and shareholders.

Prepetition Assets

Assets that a debtor owned before filing for bankruptcy protection.

Bankruptcy Estate

The assets that are collected from a debtor who files for bankruptcy.