Paul, a full-time graduate student at a state university, incurred the following expenses related to his attendance in the current year: Off-campus housing $7,800 Utilities $3,200 Books, fees, and supplies 2,500 Computer entertainment software 700 Internet access 350 Paul's tuition was paid through scholarships. Annual housing allowance for the university is $10,000. How much of Paul's expenses may be paid with Sec. 529 funds? A. $2,500 B. $12,850 C. $14,550 D. $10,300