Matthew, a Single Taxpayer with Adjusted Gross Income of $90,000

question 144

Multiple Choice

Matthew, a single taxpayer with adjusted gross income of $90,000, works as a computer programmer for the Novak Corporation. The corporation reimburses all its employees 50% of tuition, fees and books for courses taken at the local university. Matthew incurs $6,000, is reimbursed $3,000, and can deduct the remaining $3,000 of the education expense
?
I.As a deduction for adjusted gross income.
II.Only if the course is required by state law to continue in his current job.

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Expected Value

The long-run average or mean value of random variables, indicating the anticipated outcome of an experiment if it were repeated many times.

Discrete Random Variable

A variable that assumes a finite number of unique values, typically signifying the results of a stochastic process.

Continuous Random Variable

A type of random variable that can take an infinite number of possible values within a given range, often associated with measurements.

Expected Value

The sum of all possible outcomes of a random process, each multiplied by its probability of occurrence.