Rachel Is Single and Has a College Degree in Finance

question 107

Multiple Choice

Rachel is single and has a college degree in finance. She is employed as a loan officer at a bank; her yearly AGI approximates $50,000. During the year, she enrolled in a weekend MBA program and incurred the following nonreimbursed expenses: $4,100 (tuition) , $300 (books) , $200 (other school supplies) , and $200 (transportation to and from campus) . Disregarding the 2%-of-AGI limitation, as to the MBA program, Rachel has a:

• A)Deduction for and deduction from AGI of $0.
• B)Deduction for AGI of $4,000 and deduction from AGI of $800.
• C)Deduction for AGI of $4,000 and deduction from AGI of $700.
• D)Deduction for AGI of $4,100 and deduction from AGI of $700.
• E)None of these.

---

Definitions:

Right-to-Work Laws

Legislation that prohibits agreements between labor unions and employers that make union membership or payment of union dues a condition of employment.

Union Shops

Workplaces where employment is conditional upon the worker's membership in the union, typically after a set period has been completed.

National Labor Relations Act

A US law enacted in 1935 that protects the rights of employees and employers, encourages collective bargaining, and curtails certain private sector labor and management practices, which can harm the general welfare.

Better Working Conditions

Improvements in the physical and psychological aspects of the work environment, aimed at enhancing employees' well-being.