Which of the Following Statements Regarding a Coverdell Education Savings

question 103

Multiple Choice

Which of the following statements regarding a Coverdell Education Savings Account (CESA) is incorrect?

• A)In order to be tax-free,distributions must be used exclusively to pay the qualified education expenses of the beneficiary.
• B)Any person can contribute to a CESA,even if he or she is not related to the beneficiary.
• C)A person can contribute to only one CESA during each tax year.
• D)Contributions to a CESA are not tax-deductible.

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Definitions:

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A retail business model that operates stores across the United States, serving coffee and related products.

Sales Revenue

The gross income earned from the sales of goods or services before removing any expenditures.