Mr. and Mrs. Golden are married and have on pre-school-aged child. During the year Mrs. Golden is employed and earns $15,000 while Mr. Golden is a full-time student for the entire year The amount paid for child care is $3,500. On a joint return, the credit for child and dependent care expenses is (The applicable percentage is 35% at AGI of 15,000; 34% at AGI of 17,000; 33% at AGI of $19,000; etc.): THE ANSWER IS C, BUT WHY? PLEASE EXPLAIN

a. $700

b. $1,190

c. $1,020

d. $1,155

e. none of the above