Beverly and Charlie are married and have 1 child, Carla, who is 8 years old. With all the changes in the tax law concerning higher education expenses, Beverly and Charlie realize they need to plan for their daughter's college education. They intend to contribute $2,000 per year for the next 10 years to a Coverdell Education Savings Accounts for Carla. Their broker has advised them that the $20,000 they contribute to the Coverdell Education Savings Accounts will generate total income of $8,900. The total cost of tuition and fees for Carla's four years at the local university is expected to be $80,000. Beverly and Charlie expect to have $11,600 in savings and $28,900 from the Coverdell Education Savings Accounts available to pay for Carla's tuition costs. They plan on obtaining $14,500 in qualified student loans and selling stock for $25,000 to provide the additional money they need to pay Carla's tuition and fees. The amount of their savings is based on annual growth of 6%, and the gain on the stock is based on a growth rate of 8% per year. The payments on the student loans will not start until 6 months after Carla's graduation. The sale of the stock is expected to generate a gain of $12,000. The broker also estimates that when Carla starts school, the phase-out range for married taxpayers for the American Opportunity Tax Credit and the Lifetime Learning Tax Credit will be $180,000 to $200,000 and that the phase-out for student loan interest will be $85,000 to $100,000. The phase-outs will increase by $1,000 per year. The American Opportunity Tax Credit limits are expected to be 100% of the first $3,000 of expenses and 25%of the next $3,000 of expenses in 10 years. The Lifetime Learning Tax Credit will be limited to 20%of the first $15,000 of expenses. Beverly and Charlie's adjusted gross income when Carla starts college is expected to be $84,000 and will increase 5% per year. The tuition is constant over the four years ($20,000 per year), and Carla's $80,000 tuition can be paid using any combination of the funding sources. Write a letter to Beverly and Charlie suggesting one combination of the funding sources to pay for Carla's tuition. Your letter should also explain the tax savings from your proposed funding strategy and why other possible funding source combinations will not produce greater savings.