Kyle and Alyssa Paid $1,000 and $2,800 in Qualifying Expenses

Multiple Choice

Kyle and Alyssa paid $1,000 and $2,800 in qualifying expenses for their two daughters Jane and Jill,respectively,to attend the University of California.Jane is a sophomore and Jill is a freshman.Kyle and Alyssa's AGI is $135,000 and they file a joint return.What is their allowable American opportunity tax credit after the credit phase-out based on AGI is taken into account?

A) $0.
B) $2,000.
C) $3,800.
D) $3,500.