Martha Participated in a Qualified Tuition Program for the Benefit

question 38

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 is not required to include the $2,000 ($8,000 - $6,000) in her gross income when the funds are used to pay the tuition.
• B) 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.
• C) Martha must include $8,000 in her gross income.
• D) Martha's son must include $8,000 in his gross income.
• E) None of these.

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Definitions:

Functionalist Perspective

A theoretical framework in sociology that focuses on the function of each component of society and how those components fit together.

Social Institutions

Complex social forms that reproduce themselves such as governments, the family, human languages, universities, hospitals, business corporations, and legal systems.

Casual Conversation

Informal exchange of information and ideas between individuals without specific purpose or structure.

Friends

Individuals with whom one shares a bond of mutual affection, typically exclusive of sexual or family relations.