Lou and Stella North are married, file a joint return, and have two dependent children in college, Phil and Jaci. Phil attends a State University in a neighboring state, and Jaci attends a State University in their home state. Neither receives any type of financial assistance. The Norths€™ modified AGI in 2015 is $112,000. The children€™s classifications and expenses are as follows:

a. Compute any education credits that the Norths may claim in 2015.
b. How would your answer in Part a change if Phil received an academic scholarship of $3,000 (excluded from gross income) for each semester in 2015?
c. How would your answer in Part a change if Lou and Stella€™s modified AGI for 2015 was $175,000?
d. How would your answer in Part a change if Phil had been a junior during Spring semester 2015 and a senior during Fall semester 2015?

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Spring Semester 2015 (paid in January 2015) Fall Semester 2015 (paid in July 2015) Phil Senior Master's candidate Tuition S7,500 S8,000 Laboratory fees 500 500 Student activity fees 100 100 Course materials 400 450 (books) 3,200 Sophomore S1,600 Room and board 3,200 aci Junior Tuition S1,750 Student activity fees 100 100 Course materials 250 300 (books) Room and board 3,500 3,700