Rachel Is Single and Has a College Degree in Finance

question 136

Multiple Choice

Rachel is single and has a college degree in finance. She is employed as a loan officer at a bank; her yearly AGI approximates $50,000. During the year, she enrolled in a weekend MBA program and incurred the following nonreimbursed expenses: $4,100 (tuition) , $300 (books) , $200 (other school supplies) , and $200 (transportation to and from campus) . Disregarding the 2%-of-AGI limitation, as to the MBA program, Rachel has a:

• A) Deduction for and deduction from AGI of $0.
• B) Deduction for AGI of $4,000 and deduction from AGI of $800.
• C) Deduction for AGI of $4,000 and deduction from AGI of $700.
• D) Deduction for AGI of $4,100 and deduction from AGI of $700.
• E) None of the above.

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Definitions:

Sales Budget

A financial plan that estimates the expected revenue from sales for a specific period, taking into account factors like market conditions, historical sales data, and economic forecasts.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period of time, often used by businesses to manage cash flow and ensure liquidity.

Minimum Cash Balance

The smallest amount of cash that a company or individual aims to hold in order to meet expected and unexpected needs.

Loan Interest

The amount charged by a lender to a borrower for the use of borrowed money, calculated as a percentage of the principal.