The Exclusion of Interest on Educational Savings Bonds

question 7

Multiple Choice

The exclusion of interest on educational savings bonds:

• A)Applies only to savings bonds owned by the child.
• B)Applies to parents who purchase bonds for which the proceeds are used for their child's education.
• C)Means that the child must include the interest in income if the bond is owned by the parent.
• D)Does apply even if used to pay for room and board.
• E)None of these.

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