Excess scholarship amount and 529

I have been reading some posts relevant to my question, but I'm still confused. I'd greatly appreciate your help on this. Let me describe my situation:

• My daughter is 21 years old and a full-time college student
• She received a  scholarship that covers more than the tuition:
  • Scholarship amount: $46,000
  • Tuition & fees: $19,000
  • Thus, she has excess money: $27,000
• She also made $20,000 from her internship
• We received $2,200 from her 529 plan. The 1099-T was sent to me (my daughter is the beneficiary)
• In sum, her income last year was $49,200 ($27,000+$20,000 + $2,200)
• I see that excess money from the scholarship ($27,000) is taxable

Now, here are my questions:

1. Since I didn't pay any money for her college, do I even need to enter 1098-T on my return? Or should we both have to enter the 1098-T since she's my dependent?
2. I read from some posts that I may be able to "split" the scholarship excess. Is it true? If yes, would this work?
   • Both my daughter and I enter the 1098-T. BUT we enter different amounts
   • My daughter enters $0 for Box 1 and $46,000 for Box 5. She'll end up paying tax on $46,000
   • I enter $19,000 for Box 1 and $0 for Box 5
   • Is this a correct way to split it? Is it legal to do this? Will this help lower the tax that we owe?
3. Who should report 1099-T? It's sent to me, but the beneficiary is my daughter.
4. Do I even claim her as my dependent when the scholarship and her income covered her housing and other living expenses? 

Thanks for your help!