Mary Lou took an $8,000 distribution from her educational savings account and used $6,000 to pay for qualified higher education expenses.The remaining balance of $2,000 was used to purchase clothes.On the date of the distribution,her educational savings account had a $25,000 balance including the $20,000 she had contributed.How much of the $8,000 distribution is tax-free?

A)$0

B)$6,000

C)$7,600

D)$7,625

E)$8,000

Answer rating: 100% (QA)

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