Shellie, a single individual, received her Bachelor’s degree in 2019, and took a job with a salary of $45,000 per year. In 2020, she paid $1,500 of interest on qualified education loans. Which of the following statements is correct? a. Taxpayers are not allowed a deduction for education loan interest in 2020. b. If her income had been $65,000, the deductible amount would have been phased out. c. The full $1,500 is deductible in arriving at adjusted gross income (AGI). d. If her payment had been $3,000, only $2,000 would have been deductible in arriving at AGI and the $1,000 excess would have been treated as nondeductible consumer interest
Shellie, a single individual, received her Bachelor’s degree in 2019, and took a job with a salary of $45,000 per year. In 2020, she paid $1,500 of interest on qualified education loans. Which of the following statements is correct? a. Taxpayers are not allowed a deduction for education loan interest in 2020. b. If her income had been $65,000, the deductible amount would have been phased out. c. The full $1,500 is deductible in arriving at adjusted gross income (AGI). d. If her payment had been $3,000, only $2,000 would have been deductible in arriving at AGI and the $1,000 excess would have been treated as nondeductible consumer interest
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Shellie, a single individual, received her Bachelor’s degree in 2019, and took a job with a salary of $45,000 per year. In 2020, she paid $1,500 of interest on qualified education loans. Which of the following statements is correct?
| a. |
Taxpayers are not allowed a deduction for education loan interest in 2020.
|
|
| b. |
If her income had been $65,000, the deductible amount would have been phased out.
|
|
| c. |
The full $1,500 is deductible in arriving at adjusted gross income (AGI).
|
|
| d. |
If her payment had been $3,000, only $2,000 would have been deductible in arriving at AGI and the $1,000 excess would have been treated as nondeductible consumer interest.
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education