Jacob, who is single, paid educational expenses of $16,000 in 2021. He redeemed Series EE bonds and received principal of $8,000 and interest of $3,000. Jacob has other adjusted gross income of $87,200. The $3,000 exclusion must be reduced by a. $0. b. $1,400. c. $1,600. d. $3,000.

Jacob, who is single, paid educational expenses of $16,000 in 2021. He redeemed Series EE bonds and received principal of $8,000 and interest of $3,000. Jacob has other adjusted gross income of $87,200. The $3,000 exclusion must be reduced by a. $0. b. $1,400. c. $1,600. d. $3,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Jacob, who is single, paid educational expenses of $16,000 in 2021. He redeemed Series EE bonds and received principal of $8,000 and interest of $3,000. Jacob has other adjusted gross income of $87,200. The $3,000 exclusion must be reduced by

a.

$0.

b.

$1,400.

c.

$1,600.

d.

$3,000.

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