The taxpayer's marginal tax bracket is 22%. Which would the taxpayer prefer? $1,000 taxable income rather than $1,000 tax-exempt income. $800 tax-exempt income rather than $1,000 taxable income $825 tax-exempt income rather than $1,100 taxable income. $1.220 taxable income rather than $1,000 tax-exempt income None of the above Question 2 3/3 points Kathryn invested $15,000 into a section 529 qualified tuition plan when her daughter was younger. When her daughter was ready to start college, the fund balance had grown to $22,000. Her daughter was given a scholarship by a college in another part of the state that covered tuition, fees, and books. They withdrew $6,000 frees the account to use for room and board costs at college. The tax consequence of this transaction is O Kathryn has taxable income because she had a gain on the section 529 plan and she withdrew funds, which created a realized gain on this account. If they withdraw 56,000 each year to pay for room and board costs, Kathryn will have taxable income in the year when the total withdrawals exceed the $15,000 investment in the section 529 plan Neither Kathryn nor her daughter have taxable income because the funds were used for qualified educational expenses Her daughter has to include the $6,000 in gross income because scholarships can only be excluded to the extent that they cover tuition and fees