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 2018 is $122,000. The children's classifications and expenses are as follows:

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a. Compute any education credits that the Norths may claim in 2018.

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 2018 (paid in January 2018) Fall Semester 2018 (paid in July 2018) Master's candidate $8,000 500 Phil: Senior $7,500 500 Tuition Laboratory fees Student activity fees Course materials (books) Room and board 100 400 100 450 3,200 3,200 Jaci: Tuition Sophomore $1,600 100 250 Junior $1,750 100 Student activity fees Course materials (books) Room and board 300 3,500 3,700