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 2023 is \($122,000.\) The children’s classifications and expenses are as follows:

a. Compute any education credits that the Norths may claim in 2023.

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?

c. How would your answer in Part a change if Lou and Stella’s modified AGI was \($175,000\)?

d. How would your answer in Part a change if Phil had been a junior during Spring semester and a senior during Fall semester?

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Phil: Tuition Laboratory fees Student activity fees $7,500 500 Spring Semester 2023 (paid in January 2023) Senior Fall Semester 2023 (paid in July 2023) Master's candidate $8,000 500 100 100 Course materials (books) 400 450 Room and board 3,200 3,200 Jaci: Sophomore Junior Tuition $1,600 $1,750 Student activity fees 100 100 Course materials (books) 250 300 Room and board 3,500 3,700