Which of the Following Is Correct for Qualified Tuition Programs

question 44

Multiple Choice

Which of the following is correct for Qualified Tuition Programs?

• A)Contributions are deductible and qualified educational expense distributions are tax-free.
• B)Contributions are not deductible and qualified educational expense distributions are tax-free.
• C)Contributions are deductible and qualified educational expense distributions are taxable.
• D)Contributions are not deductible and qualified educational expense distributions are taxable.

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Definitions:

Voting Shares

Voting shares are shares of stock in a company that grant the shareholder the right to vote on corporate matters, such as electing the board of directors.

Grassroots Corporation

A business organization that is founded and operated by ordinary people or community members, often focusing on local or social causes.

Tender Offer

A type of takeover in which an aggressor corporation offers the target shareholders a price above their stock’s current market value.

Market Value

The current price at which an asset or service can be bought or sold in an open and competitive market.