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:

Idle Capacity

Unused or underutilized production or operational capacity within a business, often resulting in inefficiency and increased costs.

Excess Equipment

Unused or surplus machinery and tools that exceed the current production needs of a company.

Sales Increase

A rise in the volume or value of products or services sold by a business over a specific period.

Resource Imbalance

A situation where the allocation of resources does not match the needs or demands, leading to inefficiencies or operational challenges.