Multiple Choice
Mary Lou took an $8,000 distribution from her educational savings account and used $6,000 to pay for qualified higher education expenses. The remaining balance of $2,000 was used to purchase clothes. On the date of the distribution, her educational savings account had a $25,000 balance including the $20,000 she had contributed. How much of the $8,000 distribution is tax-free?
A) $0
B) $6,000
C) $7,600
D) $7,625
E) $8,000
Correct Answer:
Verified
Correct Answer:
Verified
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