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:

Net Assets

The difference between a company's total assets and its total liabilities, indicating the equity value in the company.

Contributed Services

Services provided by volunteers or donated resources that are typically not paid for but are recorded in the financial statements if they create or enhance a nonfinancial asset or require specialized skills.