Martha Participated in a Qualified Tuition Program for the Benefit

question 93

Multiple Choice

Martha participated in a qualified tuition program for the benefit of her son.She invested $6,000 in the fund.Four years later her son withdrew $8,000, the entire balance in the program, to pay his college tuition.

• A)Martha must include the $2,000 ($8,000 - $6,000) in her gross income when the funds are used to pay the tuition.
• B)Martha must include the portion of the $2,000 accumulated each year in her gross income (i.e., interest).
• C)Martha's son must include the $2,000 ($8,000 - $6,000) in his gross income when the funds are used to pay the tuition.
• D)Neither Martha nor her son must include the $2,000 in gross income.
• E)None of the above.

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Definitions:

Equitably Distributed

A state in which resources, opportunities, and benefits are allocated fairly among all members of a community or society.

Identification

The process of associating oneself with particular groups, ideals, or characteristics, contributing to one's sense of identity.

Organizational Beliefs

The shared values, principles, and norms that characterize the culture and behaviors of an organization, influencing its decision-making and practices.

Positional Power

The authority and influence that comes from the position one holds within an organization's hierarchy.