This fall Mark finally repaid his student loan. He originally borrowed the money to pay tuition...

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This fall Mark finally repaid his student loan. He originally borrowed the money to pay tuition several years ago, when she a

business accounting

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Answer 1

Answer #1

If we are filing as single and our income is between $65000 and $80000 then she will not be eligible for entire interest paid.

The disallowed interest calculation is as follows:

2400 x (75000-65000) / (80000 - 65000) = $1600.

So the allowable deduction is 2400-1600 = $800.

So the correct answer is Option B.

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Answer 2

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