QUESTION 25

1. The education tax credits (i.e., the American Opportunity credit and the lifetime learning credit) are available to help defray the cost of higher education regardless of the income level of the taxpayer.

   True

   False

QUESTION 26

1. Ralph gives his daughter, Angela, stock (basis of $8,000; fair market value of $6,000). No gift tax results. If Angela subsequently sells the stock for $10,000, what is her recognized gain or loss?

   	a.	$2,000
   	b.	$10,000
   	c.	$0
   	d.	$4,000