1.Harry and Wilma are married and file a joint income tax return. On their tax return, they report $44,000 of adjusted gross income ($20,000 salary earned by Harry and $24,000 salary earned by Wilma) and claim two exemptions for their dependent children. During the year, they pay the following amounts to care for their 4-year old son and 6-year old daughter while they work.

ABC Day Care Center

$3,200

Blue Ridge Housekeeping Services

2,000

Mrs. Mason (Harry's mother)

1,000

Harry and Wilma may claim a credit for child and dependent care expenses of:

a. $840.

b. $1,040.

c. $1,200.

d. $1,240.