Sunya established a qualified tuition program for each of his twins, Kim and Jim. He started each fund with $22,000 when the children were five years old. Sunya made no further contributions to his children's plans. Thirteen years later, both children have graduated from high school. Kim's fund has accumulated to $45,000, and Jim's has accumulated to $42,000. Kim decides to attend a state university, which will cost $60,000 for four years (tuition, fees, room and board, and books). Jim decides to go to work instead of going to college. During the current year, $7,500 is used from Kim's plan to pay the cost of her first semester in college. Because Jim is not going to college now or in the future, Sunya withdraws the $42,000 plan balance and gives it to Jim to start his new life after high school. LABEL each answer. a. During the period since the plans were established, should Sunya or the twins have been including the annual plan earnings in gross income? Explain. b. What are the tax consequences to Kim and Sunya of the $7,500 being used for the first semester's higher education costs? c. Because of her participation in the qualified tuition program, Kim received a 10% reduction in tuition charges; so less than $7,500 was withdrawn from her account. Is either Sunya or Kim required to include the value of this discount in gross income? Explain. d. What are the tax consequences to Sunya (is any amount taxable and why) of Jim's qualified tuition program