Timothy and Alice,who Are Married with Modified AGI of $90,000,are

question 49

Multiple Choice

Timothy and Alice,who are married with modified AGI of $90,000,are sending their daughter to her first year of college.Their total tuition and related payments during the year amounted to $13,000.In addition,their daughter received a $10,000 scholarship to cover tuition.They have not taken advantage of any other type of tax benefit related to educational expenses.Their American Opportunity Tax Credit is

• A)$2,000.
• B)$2,250.
• C)$2,500.
• D)$3,000.

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Definitions:

Complete Unit

A single item that is ready for sale or use, containing all its necessary parts or components.

Standard Account Forms

Preset templates used for recording financial transactions and keeping track of financial information in accounting.

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A record of a financial transaction in an accounting system.

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