Conner and Matsuko Paid $1,000 and $2,000, in Qualifying Expenses

Conner and Matsuko paid $1,000 and $2,000, in qualifying expenses for their two sons, Jason and Justin, respectively, to attend Montana State University. Jason is a sophomore and Justin is a freshman. Conner and Matsuko's AGI is $195,000. What is their allowable American opportunity tax credit?

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