Shellie, a Single Individual, Received Her Bachelor's Degree in 2015

question 110

Multiple Choice

Shellie, a single individual, received her Bachelor's degree in 2015, and took a job with a salary of $45,000 per year. In 2016, she began paying interest on qualified education loans. She was able to pay $1,500 in 2016. Which of the following statements is correct?

• A)The full $1,500 is deductible in arriving at adjusted gross income (AGI).
• B)If her payment had been $3,000, only $2,000 would have been deductible in arriving at AGI and the $1,000 excess would have been treated as nondeductible consumer interest.
• C)If her income had been $60,000, the deductible amount would have been phased out.
• D)Taxpayers are not allowed a deduction for education loan interest in 2016.

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Definitions:

Costal Cartilages

Costal cartilages are bars of hyaline cartilage that serve to prolong the ribs anteriorly and contribute to the elasticity of the thoracic cage.

Sternum

Breastbone.

Olecranon Process

Process on the distal end of the ulna, forming the point of the elbow.

Elbow

The joint connecting the forearm to the upper arm, allowing for the flexion and extension of the forearm.