Nick and Katelyn Paid $1,600 and $2,100 in Qualifying Expenses

question 32

Multiple Choice

Nick and Katelyn paid $1,600 and $2,100 in qualifying expenses for their two daughters,Nicole and Naomi,respectively,to attend the University of Nevada.Nicole is a sophomore and Naomi is a freshman.Nick and Katelyn's AGI is $202,000.What is their allowable American opportunity tax credit after the credit phaseout based on AGI is taken into account?

• A) $0.
• B) $2,000.
• C) $3,050.
• D) $3,700.

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Definitions:

Steel Makers

Companies involved in the production of steel, an alloy of iron and carbon used widely in construction and manufacturing.

Attempted Monopolization

An action by a firm that involves anticompetitive conduct, the intent to gain monopoly power, and a “dangerous probability” of success in achieving monopoly power.

Antitrust Action

A lawsuit or legal move to challenge practices that restrain trade or competition in the market.

Sherman Act

A United States antitrust law passed in 1890 that prohibits monopolistic practices and promotes competition.