In the current year, Sammy Davis, an accountant, took a continuing education course in the "Ethics of Not Cheating on a Tax Return" (similar to the Ethics of Not Cheating in a Tax course). 

The course was offered by a local community college and cost $1,500. Sammy also bought a text book for the course that cost $100. In addition, Sammy's son, Jameson, is a junior at the State University. 

His tuition bill for two semesters was $9,000 ($4,500 in Winter and Fall semesters) and his cost for books was $450 for the current year. 

Sammy paid for Jameson's college costs and even though Jameson has a part-time job to pay for living expenses while in school, he is still a dependent of Sammy. Sammy is married to Eleanor and their combined AGI for the current year is $125,000. 

a. Which expenses, if any, qualify for the lifetime learning credit? 

b. Calculate the lifetime learning credit for the Davis family. Note: the Davis's AGI exceeds the threshold amount. 

c. Which expenses, if any, qualify for the American Opportunity credit? 

d. Calculate the American Opportunity credit for the Davis family.

Answer rating: 100% (QA)

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