Cecil cashed in a Series EE savings bond with a redemption value of $20,500 and...
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Accounting
Cecil cashed in a Series EE savings bond with a redemption value of $20,500 and an original cost of $14,350.
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: (Leave no answer blank. Enter zero if applicable.)
a. Cecil plans to spend all of the proceeds to pay his sons tuition at State University. Cecils son is a full-time student, and Cecil claims his son as a dependent. Cecil estimates his modified adjusted gross income at $70,200.
b. Assume the same facts in part (a), except Cecil plans to spend $6,150 of the proceeds to pay his sons tuition at State University, and Cecil estimates his modified adjusted gross income at $66,100.
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