Kyle and Alyssa Paid $1,000 and $2,000 in Qualifying Expenses

question 46

Multiple Choice

Kyle and Alyssa paid $1,000 and $2,000 in qualifying expenses for their two daughters Jane and Jill,respectively,to attend the University of California.Jane is a sophomore and Jill is a freshman.Kyle and Alyssa's AGI is $132,000 and they file a joint return.What is their allowable American opportunity tax credit after the credit phase-out based on AGI is taken into account?

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

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Definitions:

Quantity of Sales

The total number of units sold of a particular product or service within a specific timeframe.

First Year

The initial year of a particular time frame or activity, often used to set a baseline for comparison.

Profit Generated

The amount of money that remains from revenues after all the firm's expenses are subtracted.

Second Year

The period or stage that follows the first year in a multi-year sequence, such as in education or a job.