Aoc education credit available in this case ?

[RWG1950]

Having trouble getting my head around "qualifying expenses" to use for this credit. Not sure if the credit is actually available for parents in this instance.
Taxpayers income level will allow the full AOC credit. They have a dependent child enrolled in his 3rd year as a university undergrad & has used 2 prior AOC's

The 1098-T shows $ 36,980 tuition in box #2. Scholarship of $ 15,300 is shown in box #5
Grandparents 529 plan apparently paid (according to the taxpayers) $ 25,007 of the tuition
$ 1,473 in course books & fees were paid by parent/taxpayers
$ 6,340 in room & meal plan amounts were paid by parent/taxpayers

can't seem to figure out (after the subtractions) what, if anything, remains that would be considered eligible to be used for the AOC ?

[BP.]

Don't reduce the parents' qualified education expenses by the 529 plan distribution before applying the AOC. Figure AOC first.

See TTB 12-6 & 7 and Pub 970 on how to coordinate 529 distributions with education credits.

Then, after confirming the qualified tuition expenses reported on the 1098T with a printout of the student's financial transcript, you will likely find the necessary $4,000 is going to be there for the AOC.