Steve Goes to Tri-State University and Pays $40,000 in Tuition

question 5

Multiple Choice

Steve goes to Tri-State University and pays $40,000 in tuition. Steve works a part-time job to pay for his schooling and has an AGI of $17,000. How much is his American Opportunity Credit?

• A)$2,000
• B)$2,500
• C)$4,000
• D)$1,000
• E)He does not qualify for the American Opportunity Credit.

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Definitions:

Percent Change

A mathematical calculation that indicates the percentage difference between two values, often used to measure growth or decline.

Initial Value

The starting amount before any additions, subtractions, or other changes are made.

Percent Change

A measure that indicates how much a quantity has increased or decreased in percentage terms over a specified period.

Wholesale Cost

The cost of goods purchased in large quantities directly from manufacturers or distributors before any markup for retail sale.