Calculate the amount of interest cecil

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Reference no: EM131809190

Problem

Cecil cashed in a Series EE savings bond with a redemption value of $21,000 and an original cost of $14,700.

For each of the following independent scenarios, calculate the amount of interest Cecil will include in his gross income assuming he files as a single taxpayer:

a. Cecil plans to spend all of the proceeds to pay his son's tuition at State University. Cecil's son is a full-time student, and Cecil claims his son as a dependent. Cecil estimates his modified adjusted gross income at $69,500.

b. Assume the same facts in part (a), except Cecil plans to spend $6,300 of the proceeds to pay his son's tuition at State University, and Cecil estimates his modified adjusted gross income at $65,300.

Reference no: EM131809190

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