Timothy and Alice,who Are Married with Modified AGI of $90,000,are

question 49

Multiple Choice

Timothy and Alice,who are married with modified AGI of $90,000,are sending their daughter to her first year of college.Their total tuition and related payments during the year amounted to $13,000.In addition,their daughter received a $10,000 scholarship to cover tuition.They have not taken advantage of any other type of tax benefit related to educational expenses.Their American Opportunity Tax Credit is

• A)$2,000.
• B)$2,250.
• C)$2,500.
• D)$3,000.

---

Definitions:

Long-Standing Business Relationship

A business relationship characterized by a prolonged period of association and mutual dealings between parties.

Mediation

A method of dispute resolution where a neutral third party, the mediator, helps the disputing parties to reach a mutually acceptable agreement.

Adversarial

Characterized by conflict or opposition, especially in a legal context where two or more parties argue against each other.

Alternative Dispute Resolution

A range of dispute resolution methods outside of the courtroom, including mediation and arbitration, intended to result in a consensus between the parties.