In the Fall of 2016,James Went Back to School to Earn

question 125

Multiple Choice

In the fall of 2016,James went back to school to earn a master of accountancy degree.He incurred $7,000 of qualified educational expenses and his modified AGI for the year was $40,000.His Lifetime Learning Credit is

• A)$1,000.
• B)$1,400.
• C)$1,800.
• D)$2,500.

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Definitions:

Obligor

A person or entity legally bound to provide a benefit or payment to another under the terms of a contract.

Statute of Frauds

A rule of law stipulating that specific kinds of agreements must be documented and signed in order to be legally binding.

Uniform Commercial Code

A compilation of legal regulations and guidelines that dictate the conduct of business transactions and operations in the United States.

Parol Evidence Rule

A principle in contract law that prevents parties from presenting extrinsic evidence to alter or challenge the terms of a written agreement.