This Fall Manfred Enrolled in the Law School at State

question 52

Multiple Choice

This fall Manfred enrolled in the law school at State University (a qualified educational institution) and paid $6,200 in tuition. Until his enrollment Manfred worked as a stock broker and this year he reports $70,000 in wages. If Manfred files single and reports no other items of income or expense how much of the tuition can he deduct as a business expense?

• A) Manfred can deduct $6,200 as a miscellaneous itemized deduction.
• B) Manfred can deduct half of his tuition as a miscellaneous itemized deduction.
• C) Manfred can deduct half of his tuition for AGI.
• D) Manfred can deduct $6,200 for AGI.
• E) None - the tuition is not deductible as a business expense.

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Definitions:

Material B39U

is a specific type of raw material, possibly designated for use in a specialized manufacturing process, but without further context, its exact nature is unclear.

Supervisor's Salary

The amount paid to the individual overseeing and managing a group of employees or a particular department within a company.

Net Operating Income

Net operating income reflects the profit a company makes from its operations, exclusive of taxes and interest.

Variable Costs

are expenses that change in proportion to the activity of a business, such as raw material costs, which increase with the level of production.