This Fall Manfred Enrolled in the Law School at State

question 97

Multiple Choice

This fall Manfred enrolled in the law school at State University (a qualified educational institution) and paid $6,200 in tuition.Until his enrollment Manfred worked as a stock broker and this year he reports $70,000 in wages.If Manfred files single and reports no other items of income or expense how much of the tuition can he deduct as a business expense?

• A) Manfred can deduct half of his tuition for AGI.
• B) Manfred can deduct half of his tuition as a miscellaneous itemized deduction.
• C) Manfred can deduct $6,200 for AGI.
• D) Manfred can deduct $6,200 as a miscellaneous itemized deduction.
• E) None - the tuition is not deductible as a business expense.

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Definitions:

Journal Entry

A record in accounting that notes the debit and credit transactions affecting the financial statements.

Multi-Level Entry

A complex accounting entry that affects more than two accounts, used to record transactions that cannot be captured with a simple debit and credit.

Multi-Step Entry

A journal entry that involves multiple steps to complete and may affect several accounts, typically used in complex transactions.

Statement of Owner's Equity

A financial document that shows the changes in the equity of a company's owner over a period of time.