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

question 81

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

---

Definitions:

Scanlon Plan

A type of gainsharing program where employees share in financial gains through productivity improvements.

Target Ratio

A specific numerical goal used in finance and business to measure and compare the efficiency, performance, or balance of different areas of operations or financial health.

Labor Costs

The total expense incurred by employers for the salaries, wages, benefits, and other forms of compensation paid to employees.

Electrical Components

Basic elements used in electrical systems, including resistors, capacitors, transistors, and circuits, essential for the functioning of electronic devices.