Reggie and Ramona Are Married and Have Two Children in College

question 69

Multiple Choice

Reggie and Ramona are married and have two children in college. Jason is a sophomore, and Justine is a senior. They pay $2,500 in tuition and fees for Jason, $900 for his books and $3,000 for his room and board. Justine's tuition and fees are $5,000, her book expense is $800, and her room and board expenses are $2,600. Their adjusted gross income is $170,000. What amount can they claim as a tax credit for the higher education expenses she pays?

• A) $ -0-
• B) $2,425
• C) $3,125
• D) $3,638
• E) $4,850

Comprehend the origins and development of common law.

Recognize the role of secondary sources in interpreting and understanding the law.

Understand the structure and function of the U.S. legal system.

Recognize the importance of the doctrine of stare decisis in creating a stable and predictable legal system.

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Definitions:

Nominal Interest Rates

The interest rate before taking inflation into account, representing the face value of interest payments.

Inflation Rate

An increase in the overall price levels of goods and services in an economy during a specified period.

CPI

stands for Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Market Basket

A fixed set of goods and services whose total cost is used to track inflation and the cost of living over time through price changes.