Joe,who Is Single with Modified AGI of $84,000,is Sending His

question 93

Multiple Choice

Joe,who is single with modified AGI of $84,000,is sending his son to his first year of college.The total tuition and related payments during the year amounted to $18,000.Joe has not taken advantage of any other type of tax benefit related to educational expenses.His American Opportunity Tax Credit is

• A)$0.
• B)$1,000.
• C)$1,500.
• D)$2,500.

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Definitions:

Marginal Profit

The additional profit earned from selling one more unit of a product or service.

Marginal Revenue

The incremental profit made from the sale of an additional unit of a good or service.

Marginal Cost

The increment in overall expenses due to the output of one more unit of a product or service.

Marginal Revenue

The augmented income received from selling an extra unit of a good or service.