Leslie,who Is Single,finished Graduate School This Year and Began Repaying

question 42

Multiple Choice

Leslie,who is single,finished graduate school this year and began repaying her student loan.The proceeds of the loan were used to pay her qualified higher education expenses.She has not received any type of educational assistance or scholarships.The amount of interest paid during the year amounted to $3,800.What is the amount and classification of her student loan interest education deduction if her modified AGI is $40,000?

• A)$2,500 for AGI
• B)$2,500 from AGI
• C)$3,800 for AGI
• D)$3,800 from AGI

---

Definitions:

Volume Of Operations

The scale or magnitude of the business activities that a company carries out in a specific period.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not be considered in new decision making.

Financing Costs

Expenses incurred by a company to finance its operations or to raise capital, such as interest payments on loans.

Inflation Effects

The impact of the general increase in prices and fall in the purchasing value of money on financial instruments and investments.