Distribution from educational savings


Mary Lou took a $7,000 distribution from her educational savings account and used $6,500 to pay for qualified higher education expenses. On the date of the distribution, her educational savings account had a $28,000 balance including the $21,000 she had contributed. How much of the $7,000 distribution is tax free?

a. $1,750

b. $7,000

c. $6,875

d. $-0-

e. $6,500

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Distribution from educational savings
Reference No:- TGS046549

Expected delivery within 24 Hours