For Each of the Following Situations, Determine Whether the Expenses

question 93

Essay

For each of the following situations, determine whether the expenses are deductible as an education expense. Explain.
a.Marvin owns a real estate development firm and his adjusted gross income is $60,000. He enrolls as a part-time student at Northern College. His primary motivation for taking the classes is to obtain a greater understanding of the accounting issues associated with his real estate development business. He also believes that he can save 25% of the amount he pays in accounting expenses. The cost of the 2 courses he enrolls in is $900.
b.Nancy is employed as a computer manager for a data processing company and her adjusted gross income is $90,000. She enrolls in a night course ($225) at the local college. The course is not required by her employer, but does improve her job skills.
c.Janine is a recent graduate of Western University and has been hired by a local accounting firm. The firm expects Janine to pass the CPA exam on her initial attempt. To help her prepare for the CPA exam, she takes the Booker CPA Review Course that costs $1,500.
d.Cam runs a licensed day-care center. To maintain his license he is required to attend a minimum of 30 hours a year of continuing education. During the year, Cam attends 40 hours of continuing education seminars at a cost of $1,500.

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Definitions:

Categories

Groups or classes of items, people, or concepts that share common characteristics or attributes.

Consumer Decision-making Process

The steps a consumer goes through when deciding whether to purchase or not purchase a good or service, typically involving problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Extended Problem Solving

Consumer decisions requiring considerable cognitive activity, thought, and behavioral effort.

Stages

The distinct phases or steps in a process or life cycle, marking significant points of development or change.