1. Geoffrey was age 23 on 12/31/17. He was a full-time student and completed his 4th year of

college in May of 2017. His Spring semester was paid for in December of the prior year and

credit on those expenses has been claimed on the prior year's return. After graduation, he

was unable to find employment, so he moved back in with his parents and entered graduate

school in the fall of 2017. While going to school, he also worked part-time as a waiter.

Geoffrey's parents are claiming him as a dependent on their tax return and had an AGI of

$56,000. Geoffrey received a 1098-T from the college with Box 9 checked (grad student).

Which of the following statements is correct?

a) Geoffrey's parents will claim him as a dependent and are eligible to take a Lifetime

Learning Credit.

b) Geoffrey's parents will claim him as a dependent and are eligible to take an American

Opportunity Credit.

c) Geoffrey's parents will claim him as a dependent and may take an American Opportunity

Credit for the expenses for Geoffrey's 4th year in college and take a Lifetime Learning

Credit for Geoffrey's graduate school expenses in 2017.

d) Geoffrey's parents will claim him as a dependent but are ineligible to claim either an

American Opportunity Credit or Lifetime Learning Credit for 2017.

2. Regarding the Grays with $136,000 modified AGI and their son Joel, age 24, with $26,000

modified AGI, who can claim a tax benefit for tuition and fees paid during the current tax year?

(Exclude Student Loan Interest Deduction from this question.)

a) Only the Grays can claim the Lifetime Learning Credit, American Opportunity Credit (if

Joel qualifies), or the Tuition and Fees Deduction, whichever is more beneficial.

b) Only Joel can claim the Lifetime Learning Credit, the American Opportunity Credit (if he

qualifies), or the Tuition and Fees Deduction, whichever is more beneficial.

c) Either the Grays or Joel (but not both) can claim the education tax benefit.

d) Neither the Grays nor Joel can claim an education tax benefit.

3. In 2017, Jessica sold some stocks that she held for investment. Calculate Jessica's shortterm

capital gains/losses.

Property Date purchased Date Sold PurchasePrice Sales Price

Exxon 12/05/2016 12/18/2017 $5,800 $8,500

BOA 12/21/2016 12/21/2017 $7,800 $8,980

BP 11/15/2014 1/15/2017 $4,350 $3,850

Shell 1/18/2017 8/9/2017 $5,100 $6,500

McDonald 10/10/2016 10/8/2017 $4,300 $2,800

a) $3,780

b) ($1,500)

c) $1,080

d) ($100