ch 14 prentice halls federal taxation 2016 individuals

ques 52 American Opportunity Tax Credit and Lifetime Learning Credit. Lou and Stella North are married, file a joint return, and have two dependent children in college, Phil and Jaci. Phil attends a State University in a neighboring state, and Jaci attends a State University in their home state. Neither receives any type of financial assistance. The Norths modified AGI in 2015 is $112,000. The childrens classifications and expenses are as follows: Spring Semester 2015 (paid in January 2015) Fall Semester 2015 (paid in July 2015) Phil: SeniorMasters candidate Tuition$7,500$8,000 Laboratory fees500500 Student activity fees100100 Course materials (books)400450 Room and board3,2003,200 Jaci: SophomoreJunior Tuition$1,600$1,750 Student activity fees100100 Course materials (books)250300 Room and board3,5003,700 a. Compute any education credits that the Norths may claim in 2015. b. How would your answer in Part a change if Phil received an academic scholarship of $3,000 (excluded from gross income) for each semester in 2015? c. How would your answer in Part a change if Lou and Stellas modified AGI for 2015 was $175,000? d. How would your answer in Part a change if Phil had been a junior during Spring semester 2015 and a senior during Fall semester 2015?