Topic 1 Samuel recently graduated from Portland State University with an Accounting degree. He is currently working as an accountant for a large consulting company and wants to know how to account for the following items. The company paid for a CPA prep course, which would have cost him $3,000. They also paid for all of the CPA exam and state filing fees, which totaled $900. The bank where he got his student loans also forgave half of his $40,000 of student loans, which brought his current year balance down to $20,000. His AGI before considering any of these items was $62,000. Using the tax law, determine how these items will affect his taxes.