Juanita Receives a $2,000 Distribution from Her Coverdell Education Savings

Multiple Choice

Juanita receives a $2,000 distribution from her Coverdell Education Savings Account (CESA) .The distribution consists of $1,500 of contributions and $500 of earnings.Juanita pays $1,700 in qualified higher education expenses for the year.Calculate the amount to be included in Juanita's gross income.

A) $0
B) $75
C) $425
D) $500
E) None of these