Which of the Following Statements Regarding Coverdell Education Savings Accounts

question 92

Multiple Choice

Which of the following statements regarding Coverdell Education Savings Accounts is incorrect,disregarding any AGI limits?

• A)Distributions cannot be used for elementary and secondary education expenses.
• B)Distributions to the beneficiary are not taxable as long as they are used for tuition,fees,room and board.
• C)Contributions can be made until the beneficiary reaches 18.
• D)Contributors can make nondeductible contributions of up to $2,000 for each beneficiary.

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Definitions:

Market Share

The portion of a market controlled by a particular company or product.

Revenue

The total amount of money generated by a company from its business activities, such as sales of goods or services, before any expenses are subtracted.

Price-Taker Market

A market situation where sellers or buyers have no influence on the price of a product or service, taking the market price as given.

Market Price

The current price at which a good or service can be bought or sold on the open market, determined by the forces of supply and demand.