Often the best approach is to first use the qualifying expenses for AOTC (if available).  So in your case maybe:

$10,089 QHEE
- 2,500 Scholarship
- 4,000 AOTC expenses for max credit
--------
$3,589 Remaining expenses
+????  Room & Board / other expenses allowed for 529 plan
--------
=????  Expenses allocated to 529 plan

If there aren't enough expenses, a portion of the 529 plan earnings may be taxable on the student's return (where you have to enter the data all over again to compute).

Rule #1 of 1098-T forms:  They're notoriously unreliable.  Have the client get a financial account report.

Rick