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Lubov Fominskaja [6]
3 years ago
8

Gina receives a $2,900 distribution from her educational savings account. She uses $1,500 to pay for qualified higher education

expenses and $1,400 on a vacation. Immediately prior to the distribution, Gina’s account balance is $5,000, $3,000 of which is her contributions. What is Gina’s taxable income (after any exclusion) from the distribution?
Business
1 answer:
xz_007 [3.2K]3 years ago
6 0

Answer:

$560

Explanation:

$560

3000/5000 = 60%

2900 x 60% = 1740

2900 x 40% = 1160

1500 / 2900 x 1160 = 600

1160 - 600 = 560

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