I read over this about an hour ago, and it's been on my mind.
The general problem here is the zero-business. The minute you bring up zero in any math problem...it's a trick situation.
In this case....zero is undefined. If you had one cow, and you attempted to divide the cow by zero....there is still just one cow standing there.
You can use apples, peanuts, wasps, chunky whore-like ladies, a bull, a can of beer, and even a dead possum. You still have one standing there.
What would bother me with the story? You have a teacher with a problem, and a principal with a problem. In this scenario....the kid can't remain in the public school....he or she has to leave.