Nick and Katelyn Paid $1,600 and $2,100 in Qualifying Expenses

Nick and Katelyn paid $1,600 and $2,100 in qualifying expenses for their two daughters,Nicole and Naomi,respectively,to attend the University of Nevada.Nicole is a sophomore and Naomi is a freshman.Nick and Katelyn's AGI is $202,000.What is their allowable American opportunity tax credit after the credit phaseout based on AGI is taken into account?

A) $0.
B) $2,000.
C) $3,050.
D) $3,700.