106 STAT. 590 PUBLIC LAW 102-325—JULY 23, 1992 " (5) EMPLOYMENT EXPENSE ALLOWANCE. —The employment expense allowance is determined as follows (or using a successor provision prescribed by the Secretary under section 478): "(A) If both parents were employed in the year for which their income is reported and both have their incomes reported in determining the expected family contribution, such allowance is equal to the lesser of $2,500 or 35 percent of the earned income of the parent witii the lesser earned income. "(B) If a parent qualifies as a surviving spouse or as a head of household as defined in section 2 of the Internal Revenue Code, such allowance is equal to the lesser of $2,500 or 35 percent of such parent's earned income. "(d) PARENTS'CONTRIBUTION FROM ASSETS. — "(1) IN GENERAL. —The parents* contribution from assets is equal to— "(A) the parental net worth (determined in accordance with paragraph (2)); minus "(B) the education savings and asset protection allowance (determined in accordance with paragraph (3)); multiplied by "(C) the asset conversion rate (determined in accordance with paragraph (4)), except that the result shall not be less than zero. "(2) PARENTAL NET WORTH.—The parental net worth is calculated by adding— "(A) the current balance of checking and savings accounts and cash on hand; "(B) the net value of investments and real estate, excluding the net value of the principal place of residence; and "(C) the adjusted net worth of a business or farm, computed on the basis of the net worth of such business or farm (hereafter in this subsection referred to as *NW), determined in accordance with the following table (or a successor table prescribed by the Secretary under section 478), except as provided under section 480(f): "A4iti8ted Net Worth of a Business or Farm If the net worth ofa_bu8iness or farm Then the adjusted net worth is: Less than $1 $0 $l-$75,000 40 percent of NW $75,001-$225,000 $30,000 plus 50 percent of NW over $75,000 $225,001-$375,000 $105,000 plus 60 percent of NW over $225,000 $375,001 or more $195,000 plus 100 percent of NW over $375,000 "(3) EDUCATION SAVINGS AND ASSET PROTECTION ALLOW- ANCE. — The education savings and asset protection allowance is calculated according to the following table (or a successor table prescribed by the Secretary under section 478):
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