This Fall,Josh Paid $5,000 for His Tuition and Fees at State

question 112

Multiple Choice

This fall,Josh paid $5,000 for his tuition and fees at State University (a qualified education institution) .Assume that Josh is Marsha and Jeff's son and that Marsha and Jeff claim Josh as a dependent.Marsha and Jeff's modified AGI is $100,000.How much of Josh's $5,000 tuition and fees payments can Marsha and Jeff deduct this year? (Assume the 2016 rules apply for purposes of the qualified education expense deduction.)

• A) Marsha and Jeff can deduct $5,000 for AGI.
• B) Marsha and Jeff can deduct $4,000 for AGI.
• C) Marsha and Jeff can deduct $2,500 for AGI.
• D) Marsha and Jeff can deduct $2,000 for AGI.
• E) None - the tuition is not deductible by Marsha and Jeff.

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Definitions:

Debt-to-Equity Ratio

A financial metric that shows the comparative amount of debt and shareholders' equity utilized to fund a company's assets.

Book Value

The net value of an asset or liability according to its listing in the company's balance sheet, generally equal to its original cost minus any depreciation, amortization, or impairment costs.

Book Value per Share

The equity of a company divided by the number of outstanding shares, determining the accounting value of a share of stock.

Inventory on Credit

Inventory on credit refers to the purchase of goods that will be sold in the future without paying cash upfront, creating accounts payable for the business.