Harry Receives a $10,000 Distribution from a CESA

question 92

Multiple Choice

Harry receives a $10,000 distribution from a CESA.On this date,his total account balance is $16,000,with $4,000 representing earnings.If his qualified higher education expenses are $8,000,the amount included in gross income is:

• A) None.
• B) $500.
• C) $2,000.
• D) $2,500.
• E) None of the above.

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Definitions:

U.S. Dollar

The official currency of the United States, widely used as a benchmark and reserve currency globally.

Spot Exchange Rate

The current exchange rate at which one currency can be exchanged for another.

Forward Exchange Rate

An agreed-upon exchange rate for currencies to be exchanged at a future date, used in hedging and trading strategies.

Premium

An amount paid for an insurance policy or the amount by which the price of a bond exceeds its face value.