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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
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