Alex is studying a Commerce degree at USQ on a part-time basis. She works as an employee bookkeeper in a local accounting firm. In relation to her studies, Alex incurred the following expenses during the current income tax year:

• Stationery $200

• Textbooks $350

• Student union fees $85

• HECS $2200 (which were reimbursed by her employer)

• Travel from work to university $300

• Child-minding fees while attending university $180.

In relation to the above facts relating to Alex, what is the maximum amount deductible for self-education expenses under s 8-1 ITAA 97 for the current income year ended 30 June (ignore the effect of the s82A reduction)?

Select one:

1. $865.

2. $3865.

3. $1915.

4. $935.

5. No amount is deductible as the expenditure does not have a sufficient nexus to assessable income.