The Discharge of Certain Student Loans Is Excluded from Income

question 97

Multiple Choice

The discharge of certain student loans is excluded from income if all of the following are present except for

• A)the loan must have been made by governmental,educational,or charitable organizations.
• B)the loan proceeds must have been used to pay the cost of attending an education institution or used to refinance outstanding student loans.
• C)the loan forgiveness must be contingent upon the individual's working for a specified period of time in certain professions.
• D)the loan forgiveness is based on age.

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Definitions:

Production Possibility Frontier

A curve depicting the limit of attainable outputs for two or more products given a fixed set of resources, showing the trade-offs in production choices.

Output

The total amount of goods or services produced by a company, sector, or economy in a given period.

Slope

In mathematics, a measure of the steepness, incline, or grade of a line, typically calculated as the ratio of rise over run.

Purchased Abroad

Items or services bought from another country, often involving importation and subject to international trade policies and currency exchange rates.