Dan $($single and age $18)$ was a freshman at UW$-$Madison for the fall semester. Dan's only income for

the year was Form W$-2,$ Box $1,$ wages Of $$3,000,$ so Dan has no tax liability. Dan's parents paid his

qualified education expenses of $$5,000$; however, their income is too high to claim the American

opportunity tax credit $($AOTC$).$ If Dan's parents are eligible to$,$ but do not treat Dan as a dependent, how

much of Dan's AOTC is refundable?

A$\mathrm{.}0$

C$.$ $$2,000$

D$.$ S$2,500$