Which of the Following Statements Is Not True Regarding the Education

question 21

Multiple Choice

Which of the following statements is not true regarding the education credits?

• A)The American opportunity tax credit is only available for the first two years of postsecondary education.
• B)The lifetime learning credit is limited to $2,000 per taxpayer per year.
• C)The American opportunity tax credit is limited to $2,500 per student per year.
• D)A taxpayer cannot receive the American opportunity tax credit if he/she has a felony drug conviction.

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Definitions:

Revenues

Income that a business receives from its normal business activities, usually from the sale of goods and services to customers.

Asset Account

An account that represents a resource owned or controlled by a company that is expected to provide future economic benefits.

Consumed

Used up or exhausted, particularly in reference to resources or goods.

Liability

A financial obligation or amount owed by a business to creditors, typically reflected on the balance sheet.