Karen Is Single and Graduated from Marring University in May

question 34

Multiple Choice

Karen is single and graduated from Marring University in May of 2012.In January of 2013,she begins repaying her student loans and in 2013 pays $2,800 of interest on the loans.Her adjusted gross income is $51,000.
I.Karen can deduct $2,500 of interest as a deduction for adjusted gross income.
II.Karen can deduct $2,800 of interest as a deduction from adjusted gross income.

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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