appropriate response

William is the beneficiary of an ABLE account. He received a distribution of $$5,000,$ of which $$4,500$

was principal and $$500$ was earnings. His qualified disability expenses were as follows:

Health club exercise program

$ $200$

Health club nutrition program and supplements

$$3,100$

Financial management fees for his other accounts

$$1,500$

How much of the distribution is taxable to William?

AS$200$

B$.$S$480$

C$.$S$500$

D$.$$$5,000$