This Fall Manfred Enrolled in the Law School at State

question 104

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.The deduction for business educational expenses is limited to education that maintains or improves the taxpayer's skill in their existing trade or business.A deduction is not allowed for education that qualifies the taxpayer for a new profession (e.g., law school).

Calculate and analyze the variance for net operating income comparing actual results to the flexible budget for various months.

Understand the difference between favorable and unfavorable variances and their implications on budget performance.

Calculate the materials quantity variance and understand its impact on manufacturing efficiency.

Determine the price variance for materials and supplies and assess its effect on cost management.