Elvis Receives a $2,000 Distribution from a CESA

question 49

Multiple Choice

Elvis receives a $2,000 distribution from a CESA.On this date,the total balance is $30,000,with $12,000 representing earnings.If his qualified higher education expenses are $2,195,what amount can he exclude from gross income?

• A) $0.
• B) $800.
• C) $1,200.
• D) $2,000.
• E) Some other amount.

---

Definitions:

Authorized to Issue

Having the official power or permission to give out or distribute something, such as shares or licenses.

Franchisor

A business entity that grants a license to an individual or group enabling them to operate a business under the franchisor's trademark, name, and business model.

Negligently

Acting with a lack of care or attention expected under the circumstances, often resulting in harm or damage.

Franchise Contracts

Legal agreements granting the right to operate a business under the franchisor's brand and systems in exchange for fees or royalties.