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

question 2

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?

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

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Definitions:

Dominant Tenement

In property law, this refers to the property that benefits from an easement over another piece of land, known as the servient tenement.

Right of Way

The legal right to pass through property owned by another, or a designated corridor over which one has a legal right to pass.

Specific Performance

Specific performance is a legal remedy where a court orders the breaching party to fulfill their exact duties under a contract, as opposed to paying damages.

Damages

Compensation sought or awarded in a legal action for loss or injury.