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

question 84

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

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Definitions:

Bicycle Company

A business entity that specializes in the manufacturing, distribution, and sale of bicycles and related equipment and accessories.

National Income

The total income earned by a nation's people and businesses, including salaries, profits, and investment income, within a specific period.

Net National Product

The total value of all goods and services produced by a country's residents in a year, minus depreciation.

Depreciation

A decrease in the value of a currency as measured by the amount of foreign currency it can buy.