Morris Redeemed $6,000 (Principal of $4,500 and Interest of $1,500)of

question 48

Multiple Choice

Morris redeemed $6,000 (principal of $4,500 and interest of $1,500) of Series I Savings Bonds to pay qualified higher education expenses.His qualified expenses for the year totaled $6,500 and AGI consists of wages of $32,000.What is the amount of interest that Morris can exclude from income?

• A)$0.
• B)$500.
• C)$1,000.
• D)$1,500.