In December of This Year,Jake and Stockard,a Married Couple,redeemed Qualified

question 110

Multiple Choice

In December of this year,Jake and Stockard,a married couple,redeemed qualified Series EE U.S.Savings Bonds.The proceeds were used to help pay for their daughter's college tuition.Jake and Stockard received proceeds of $8,000 representing principal of $5,000 and interest of $3,000.The qualified higher educational expenses they paid this year totaled $6,000.Their AGI is below the threshold for phase-out of the exclusion.What is the amount of interest income Jake and Stockard can exclude from their income this year?

• A)$2,250
• B)$2,500
• C)$3,000
• D)$5,000

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Definitions:

Myelinated Fibers

Nerve fibers covered with myelin, a protective fatty layer that helps in the fast transmission of nerve impulses along the neurons.

Myelin Sheath

A protective covering made of myelin around nerve fibers, which increases the speed at which impulses propagate along the myelinated fiber.

Mening/o

A root word in medical terminology referring to the meninges, the protective membranes covering the brain and spinal cord.

Myel/o

A prefix in medical terminology related to the bone marrow or the spinal cord.