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In: Accounting2.Because of the kiddie tax, which of the following types ofinvestments should be relied...2.Because of the kiddie tax, which of the following types ofinvestments should be relied upon to fund a trust for the educationof a young beneficiary?A. Investments that emphasize high levels of current income ifthe beneficiary is under the age of 19 (24 if a student).B. Investments that provide tax-free income, regardless of thebeneficiary’s age.C. Investments that emphasize recognition of capital gainsregardless of age.D. None of the above.3.Which of the following is an inaccurate statement specific toprivate student loans?A. There is no loan forgiveness for careers in publicservice.B. Income-based repayment options are available.C. Loans may not be discharged upon the borrower’s death orpermanent disability.D. Banks, credit unions, credit card companies serve aslenders.4.Mary’s parents died in a plane crash when she was 17 years old.Her parents established both a Coverdell ESA ($30,000 accountbalance) and a 529 plan ($50,000 account balance) for Mary. Inaddition, they left Mary $100,000 in cash, $500,000 in stocks andbonds and $1 million of life insurance. The family attorney helpedMary invest the money wisely. As a result, she has $30,000 ofinterest, dividends and capital gain income this year. Mary startedher freshman year at State University this year. The tuition is$25,000 a year. What is the best way for Mary to pay for collegethis year?A, Mary should pay $4,000 from her income and $21,000 from herESAB, Mary should pay $10,000 from her income and $15,000 from her529 planC. Mary should pay $25,000 from her ESAD. Mary should pay $25,000 from her 529 plan