Max Paid $5,000 of Tuition for Him to Attend a Private

question 53

Multiple Choice

Max paid $5,000 of tuition for him to attend a private university this year. How much of this payment can Mason deduct as a qualifying education expense if he files single and reports modified AGI of $60,000 (assume the 2013 rules apply for purposes of the qualified education expense deduction) ?

• A) $5,000
• B) $4,000
• C) $2,000
• D) $0
• E) None of these.

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Definitions:

Long Run

A period of time in economics in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Output

The total amount of goods or services produced by a company, industry, or economy within a specified period.

Total Cost

The complete cost of production, including both fixed and variable costs, incurred by a firm in producing and selling a quantity of a good or service.

Variable Cost

Expenses that vary in relation to the amount of products or services a company generates.