Nora invested $8,000 in a qualified tuition program for the benefit of her son. Four years later her son, Michael withdrew $10,000, the entire balance in the program, to pay his college tuition. How much must Nora and/or Michael include in gross income?   Nora: $0 Michael: $0   Nora: $2,000 Michael: $0   Nora: $0 Michael: $2,000   Nora: $2,000 Michael: $8,000   Nora: $0 Michael: $10,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Nora invested $8,000 in a qualified tuition program for the benefit of her son. Four years later her son, Michael withdrew $10,000, the entire balance in the program, to pay his college tuition.

How much must Nora and/or Michael include in gross income?

 

Nora: $0

Michael: $0

 

Nora: $2,000

Michael: $0

 

Nora: $0

Michael: $2,000

 

Nora: $2,000

Michael: $8,000

 

Nora: $0

Michael: $10,000

 

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