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 2017 is $122,000. The children€™s classifications and expenses are as follows:

a. Compute any education credits that the Norths may claim in 2017.

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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Spring Semester 2017 (paid in January 2017) Fall Semester 2017 (paid in July 2017) Phil: Tuition Master's candidate $8,000 500 Senior $7,500 500 Laboratory fees Student activity fees Course materials (books) Room and board 100 400 100 450 3,200 3,200 Sophomore $1,600 100 250 Junior $1,750 100 300 Jaci: Tuition Student activity fees Course materials (books) Room and board 3,500 3,700