Martha Participated in a Qualified Tuition Program for the Benefit

question 82

Multiple Choice

Martha participated in a qualified tuition program for the benefit of her son.She invested $5,000 in the fund.Four years later her son withdrew $7,500,the entire balance in the program,to pay his college tuition.

• A)Martha must include the $2,500 ($7,500 - $5,000)in her gross income when the funds are used to pay the tuition.
• B)Martha must include the portion of the $2,500 accumulated each year in her gross income (i.e. ,interest).
• C)Martha's son must include the $2,500 ($7,500 - $5,000)in his gross income when the funds are used to pay the tuition.
• D)Martha's son must include the portion of the $2,500 accumulated each year in his gross income (i.e. ,interest).
• E)None of the above.

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Definitions:

Rank-Order Consistency

The maintenance of individual differences in behavior or personality over time or across situations.

Social Clock

The traditional expectations of society for when a person is expected to have achieved certain goals such as starting a family or getting settled into a career.

Temperament

The term often used for the “personality” of very young, pre-verbal children. Aspects of temperament include basic attributes such as activity level, emotional reactivity, and cheerfulness.

Individual Differences

Variations or deviations among individuals in their psychological traits, behaviors, or physiological responses.