Quentin and Janelle Would Like to Establish a Coverdell Education

question 6

Essay

Quentin and Janelle would like to establish a Coverdell Education Savings Account (CESA)for their daughter,age 5,and their nephew (the son of Quentin's brother),age 8.Their AGI is $145,000.Quentin's brother has already contributed $1,500 to a CESA for his son.
a.What is the maximum amount Quentin and Janelle can contribute to a CESA for their daughter and their nephew?
b.If their AGI were $208,000,what is the maximum amount they can contribute to a CESA for their daughter and their nephew?

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Definitions:

Fundamental Analysis

The assessment of a company's value by examining related economic, financial, and other qualitative and quantitative factors.

Common Dividends

Payments made to shareholders from a company's earnings, usually in the form of cash or additional stock, representing a portion of the earnings allocated to common stock.

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