Which of the following statements regarding a Coverdell Education Savings Account (CESA) is incorrect?   Multiple Choice   In order to be tax-free, distributions must be used exclusively to pay the qualified education expenses of the beneficiary.   Any person can contribute to a CESA, even if he or she is not related to the beneficiary.   Contributions to a CESA are not tax-deductible.   A person can contribute to only one CESA during each tax year.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

 

Which of the following statements regarding a Coverdell Education Savings Account (CESA) is incorrect?

 

Multiple Choice
  •  

    In order to be tax-free, distributions must be used exclusively to pay the qualified education expenses of the beneficiary.

  •  

    Any person can contribute to a CESA, even if he or she is not related to the beneficiary.

  •  

    Contributions to a CESA are not tax-deductible.

  •  

    A person can contribute to only one CESA during each tax year.

AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education