Carolyn Is Single and Has a College Degree in Finance

question 143

Multiple Choice

Carolyn 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: $3,900 (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, Carolyn has a:

• A)Deduction for and deduction from AGI of $0.
• B)Deduction for AGI of $4,000 and deduction from AGI of $600.
• C)Deduction for AGI of $3,900 and deduction from AGI of $700.
• D)Deduction for AGI of $4,100 and deduction from AGI of $500.
• E)None of the above.

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Definitions:

Cartels

Groups of independent market participants who collude to control prices and output in a market, often to maximize joint profits.

Antitrust Laws

Regulations that promote competition by prohibiting monopolies, monopolistic practices, and other unfair business tactics that reduce consumer choice.

Price Leadership

A market strategy where a leading firm sets prices that other firms in the market follow.

Price Cuts

A reduction in the selling price of goods or services, usually to stimulate demand or compete more effectively.