Timothy and Alice, Who Are Married with Modified AGI of $90,000

Multiple Choice

Timothy and Alice, who are married with modified AGI of $90,000, are sending their daughter to her first year of college. Their total tuition and related payments during the year amounted to $13,000. In addition, their daughter received a $10,000 scholarship to cover tuition. They have not taken advantage of any other type of tax benefit related to educational expenses. Their American Opportunity Tax Credit is

A) $2,500.
B) $2,250.
C) $3,000.
D) $2,000.