The Discharge of Certain Student Loans Is Excluded from Income

question 97

Multiple Choice

The discharge of certain student loans is excluded from income if all of the following are present except for

• A)the loan must have been made by governmental,educational,or charitable organizations.
• B)the loan proceeds must have been used to pay the cost of attending an education institution or used to refinance outstanding student loans.
• C)the loan forgiveness must be contingent upon the individual's working for a specified period of time in certain professions.
• D)the loan forgiveness is based on age.

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Definitions:

Planning Budget

A financial plan that estimates revenue and expenses over a specific period in the future, guiding managerial decisions and actions.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain period of time.

Formula

A mathematical equation or rule expressed in symbols, often used in scientific, mathematical, or financial calculations.

Variable Overhead Efficiency Variance

The difference between actual variable overhead and the standard cost, reflecting efficiency in using resources that vary with production volume.