Conner and Matsuko Paid $1,000 and $2,000,in Qualifying Expenses for Their

question 27

Multiple Choice

Conner and Matsuko paid $1,000 and $2,000,in qualifying expenses for their two sons,Jason and Justin,respectively,to attend Montana State University.Jason is a sophomore and Justin is a freshman.Conner and Matsuko's AGI is $195,000.What is their allowable American opportunity tax credit?

• A)$0.
• B)$2,000.
• C)$3,000.
• D)$3,700.

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Definitions:

Maximizing Profits

The process or strategy of adjusting the production and sale of goods and services to achieve the highest possible profit.

Fixed Costs

Costs that do not change with the level of output produced, such as rent, salaries, or insurance expenses.

Maximizing Profits

The process of increasing the difference between revenue and costs to achieve the highest possible financial gain.

Economic Profit

The surplus remaining after total costs are subtracted from total revenue, considering both explicit and implicit costs.