Gina receives a $3,000 distribution from her educational savings account. She uses $1,600 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, $2,500 of which is her contributions. What is Gina’s taxable income (after any exclusion) from the distribution?
a. $1,600
b. $1,400
c. $700
d. $0
e. Some other amount