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

question 32

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 are false.

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Definitions:

Swim Bladders

Air-filled sacs in some fish that help control buoyancy and maintain stability in the water.

Ventilation

The process of moving air in and out of the lungs to exchange oxygen and carbon dioxide.

Diaphragm

A muscle that separates the chest cavity from the abdominal cavity, playing a major role in breathing.

Inhalation

The act of breathing in, which allows air or other substances to enter the lungs.