Carla Redeemed EE Bonds Which Qualify for the Educational Exclusion

question 78

Multiple Choice

Carla redeemed EE bonds which qualify for the educational exclusion.The redemption consisted of $14,000 principal and $6,000 interest.The net qualifying educational expenses are $10,000.Her AGI is below the threshold for phase-out of the exclusion.The taxable interest is

• A)$0.
• B)$2,400.
• C)$3,000.
• D)$6,000.

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Definitions:

Dividend Yield Ratio

A financial metric indicating the annual dividends a company distributes in comparison to its stock price.

Market Price

The market rate for buying or selling an asset or service at this time.

Common Stock

Equity shares of a corporation, representing ownership interest and giving shareholders voting rights and dividends.

Dividends

Payments made by a corporation to its shareholder members, distributing profits.