David is 19 years old and a full-time college sophomore majoring in physics. The college is an eligible educational institution. He resides on campus during the school year and lives with his parents during the summer David spent $1,500 on books in 2021. David's parents provided more than half of his support David has never been convicted of a felony David received Form 1098-T as shown on the following page The Box 5 amount is an unrestricted scholarship. David received no other income in 2021. David and his parents are U.S. citizens with valid Social Security numbers David and his parents came to the site to have their retums prepared. They want to maximize the tax benefits for the family click here to see David's 1098-T 5. David's parents would like to claim the American opportunity credit on their tax return. What treatment would provide David and his parents the most favorable outcome? A. David's parents can claim only $1,500 as qualified education expenses. B. Neither David nor his parents can claim the credit because the scholarship income was more than education expenses. C. David includes $3,500 as taxable scholarship income and his parents claim $4,000 in qualified education expenses. D. David includes $7,500 as taxable scholarship income and his parents claim $4,000 in qualified education expenses.