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John, who is single, paid educational expenses of $16,000 in 2021. In 2021, he redeemed Series EE bonds and received principal of $8,000 and interest of $3,000 which he used to pay for the educational expenses. John has other adjusted gross income of $86,200 (not including the bond interest). With respect to the $3,000 of bond interest, how much will John include in taxable income in 2021? (Remove any symbols or units from your answer; do not use a $ dollar sign for your answer).

John, who is single, paid educational expenses of $16,000 in 2021. In 2021, he redeemed Series EE bonds and received principal of $8,000 and interest of $3,000 which he used to pay for the educational expenses. John has other adjusted gross income of $86,200 (not including the bond interest). With respect to the $3,000 of bond interest, how much will John include in taxable income in 2021? (Remove any symbols or units from your answer; do not use a $ dollar sign for your answer).

FINANCIAL ACCOUNTING
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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John, who is single, paid educational expenses of $16,000 in 2021. In 2021, he redeemed Series EE bonds and received principal of $8,000 and interest of $3,000 which he used to pay for the educational expenses. John has other adjusted gross income of $86,200 (not including the bond interest). With respect to the $3,000 of bond interest, how much will John include in taxable income in 2021? (Remove any symbols or units from your answer; do not use a Ș dollar sign for your answer).
Transcribed Image Text:John, who is single, paid educational expenses of $16,000 in 2021. In 2021, he redeemed Series EE bonds and received principal of $8,000 and interest of $3,000 which he used to pay for the educational expenses. John has other adjusted gross income of $86,200 (not including the bond interest). With respect to the $3,000 of bond interest, how much will John include in taxable income in 2021? (Remove any symbols or units from your answer; do not use a Ș dollar sign for your answer).
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