Problem $13-40($LO$.4,8)$

Jenna, a longtime client of yours, is employed as an architect and is president of the local Rotary chapter. To keep up to date with

developments in her profession, she attends continuing education seminars offered by the architecture school at State University. During

$2021,$ Jenna spends $$2,000$ on course tuition to attend these seminars. She spends another $$400$ on architecture books during the year.

Jenna's daughter, Caitlin, is a senior majoring in engineering at the University of the Midwest. During the $2021$ calendar year, Caitlin incurs the

following expenses: $$8,200$ for tuition $($ $$4,100$ per semester$)$ and $$750$ for books and course materials. Caitlin, who Jenna claims as a

dependent, lives at home while attending school full$-$time. Jenna is married, files a joint return, and has a combined AGI with her spouse of

$$121,000.$

a$.(1)$ Classify each of the following costs as "Eligible" or "Not Eligible" for an education tax credit through the American Opportunity credit

or the lifetime learning credit.

Eligible $/$

Not Eligible

$$2,000$ for course tuition to attend seminars

$$400$ for architecture books

$$8,200$ for daughter's tuition

$$750$ for daughter's books and course materials

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Two credits, the American Opportunity credit and the lifetime learning credit, are available to help qualifying low$-$ and middle$-$income individuals

defray the cost of higher education. The credits are available for qualifying tuition and related expenses incurred by students pursuing undergraduate

or graduate degrees or vocational training.

a$.(2)$ Jenna's American Opportunity credit is s

$,$ and her lifetime learning credit is $

X $.$

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b Calculate the couple's education tax credits if combined AGI was $$162,000.$