1. Anna is a 21-year-old full-time college student (she plans on returning home at the end of the school year). Her total support for the year was $34,000 (including $8,000 of tuition). Anna covered $12,000 of her support costs out of her own pocket (from savings, she did not work) and she received an $8,000 scholarship that covered all of her tuition costs. Which of the following statements regarding who is allowed to claim Anna as an exemption is true?

A. Even if Anna's parents provided the remaining $14,000 of support for Anna ($34,000 minus $12,000 minus $8,000), they would not be able to claim her as a dependent.

B. Even if Anna's grandparents provided the remaining $14,000 of support for Anna ($34,000 minus $12,000 minus $8,000), they would not be able to claim her as a dependent.

C. Because she provided more than half her own support, Anna would not qualify as her parents dependent.

D. None of these statements are true.

2. Lewis is an unmarried law student at State University, a qualified educational institution. Last year Lewis borrowed $30,000 and used the proceeds to pay his university tuition. This year Lewis paid $1,500 of interest on the loan. Which of the following is a true statement if Lewis reports $40,000 of salary and no other items of income or expense?

A. Lewis can deduct all the interest on his student loan for AGI.

B. Lewis can deduct all the interest on his student loan as an itemized deduction.

C. Lewis can only deduct $1,000 of the interest on his student loan for AGI.

D. Lewis can only deduct $1,000 of the interest on his student loan as an itemized deduction.

E. All of these choices are false.