8.John established a section 529 plan for his child in 2000. From 2000 until his child entered college in 2017 he deposited $3,000 per year in the 529 plan, and at the beginning of 2017 the plan had a value of $72,000. In August of 2017 John paid $10,000 for the fall semester tuition. If John takes the full $10,000 reimbursement form the 529 plan for the tuition, a. John will have to report $3,334 of the reimbursement [$10,000 x ($48,000/$72,000)] as long-term capital gain income. b. the entire $10,000 reimbursement is tax-free, but John cannot then use the tuition expense to claim education credits. c. the entire $10,000 reimbursement is taxable to John, but at his childs tax rate. d. John has no income tax consequences.