Samuel's tuition and fees for the past year totaled $12,000. Of these costs, $9,000 were paid by a withdrawal by his parents from a 529 account and the remainder was borrowed by Samuel. Which of the following tax issues is true? O A an American Opportunity tax credit of 52.250 may be taken. O B. an American Opportunity tax credit of $2.500 may be taken. OC Samuel can take a Lifetime Learning credit of $2,000 OD. a student loan interest deduction may be taken this year on implicit interest even if the actual interest payment is deferred until after he graduates

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Samuel's tuition and fees for the past year totaled $12,000. Of these costs, $9,000 were paid by a withdrawal by his parents from a 529 account and the
remainder was borrowed by Samuel. Which of the following tax issues is true?
O A. an American Opportunity tax credit of $2,250 may be taken.
B. an American Opportunity tax credit of $2.500 may be taken.
C. Samuel can take a Lifetime Learning credit of $2,000
O D. a student loan interest deduction may be taken this year on implicit interest even if the actual interest payment is deferred until after he graduates.
Transcribed Image Text:Samuel's tuition and fees for the past year totaled $12,000. Of these costs, $9,000 were paid by a withdrawal by his parents from a 529 account and the remainder was borrowed by Samuel. Which of the following tax issues is true? O A. an American Opportunity tax credit of $2,250 may be taken. B. an American Opportunity tax credit of $2.500 may be taken. C. Samuel can take a Lifetime Learning credit of $2,000 O D. a student loan interest deduction may be taken this year on implicit interest even if the actual interest payment is deferred until after he graduates.
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