Lewis Is an Unmarried Law Student at State University, a Qualified

question 64

Multiple Choice

Lewis is an unmarried law student at State University, a qualified educational institution.Last year Lewis borrowed $30,000 and used the proceeds to pay his university tuition.This year Lewis paid $1,500 of interest on the loan.Which of the following is a true statement if Lewis reports $40,000 of salary and no other items of income or expense?

• A)Lewis can deduct all the interest on his student loan for AGI.
• B)Lewis can deduct all the interest on his student loan as an itemized deduction.
• C)Lewis can only deduct $1,000 of the interest on his student loan for AGI.
• D)Lewis can only deduct $1,000 of the interest on his student loan as an itemized deduction.
• E)All of the choices are incorrect.

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Definitions:

Rate of Change

A mathematical calculation that identifies the degree to which a quantity increases or decreases over a given period.

Complexity

The state or quality of being intricate or complicated, often requiring sophisticated understanding or solutions.

High-uncertainty Environments

Situations or contexts in which there is a high level of unpredictability or instability, making it difficult to forecast future events or outcomes.

Decision Makers

Individuals or groups responsible for making choices that will impact the outcomes of certain situations or projects.