Which of the following statement is true? O A. To qualify for the earned income credit, the taxpayer must have a qualified dependent. B. The child tax credit is subject to phase-out based on the taxpayer's AGI. C. Lifetime learning tax credit is available for each qualified student including taxpayers and dependents. D. Tax credit reduces a taxpayer's taxable income dollar for dollar E. The American opportunity tax credit is available only for those students who are in their first or second year of post- secondary education. Which of the following items is a deduction from adjusted gross income? OA. Qualified business deductions B. Child-support payments C. None of these D. Alimony payments E. Self-employment taxes Gary owns city of Bloomington bonds with an adjusted basis of $200,000. During the year, he receives interest payments of $10,000. Gary partially financed the purchase of the bonds by borrowing $100,000 at 5% interest. Gary's interest payments on the loan this year are $4,000, and his principal payment is 1,000. How much interest expense can Gary deduct this year? A. $5,000 B. $4,000 C. $3,000 D. $1,000 E. $0 Which of the following items is a subtraction on Schedule M-1? O A. Book depreciation in excess of tax depreciation. B. Life insurance premium paid for key employees. C. Business entertainment expenses. D. Federal income tax per book. E. Tax-exempt interest