This Fall Manfred Enrolled in the Law School at State

question 97

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

---

Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from the total revenue.

Withdrawals

Funds or resources withdrawn from a business by its owners for individual purposes.

Salaries

Payments made to employees for their services over a specified period.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue; also known as the bottom line.