Keith Has a 2016 Tax Liability of $2,250 Before Taking

question 88

Multiple Choice

Keith has a 2016 tax liability of $2,250 before taking into account his American Opportunity tax credit. He paid $2,600 in qualifying expenses, was a full-time student, was not claimed as a dependent on his parents' return, and his American Opportunity tax credit was not subject to phase-out. What is the amount of his American Opportunity tax credit allowed?

• A)$0
• B)$2,150
• C)$2,250
• D)$2,600
• E)$4,000

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Definitions:

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body goes through when under stress, as proposed by Hans Selye.

Resistance Phase

The second stage of the general adaptation syndrome, characterized by the body's adaptation to a continuous stressor and an attempt to restore homeostasis.

Minor Frustrations

Small, often daily, annoyances or irritations that can accumulate and affect mood or well-being.

Realistic Optimists

Individuals who maintain a positive outlook on life while still being grounded in reality, acknowledging potential obstacles and planning accordingly.