Carla redeemed EE bonds which qualify for the educational exclusion. The redemption consisted of

$14,000

principal and

$6,000

interest. The net qualifying educational expenses are

$10,000

. Her AGI is below the threshold for phase - out of the exclusion. The taxable interest is\ A.

$2,400

.\ B.

$0

.\ C.

$3,000

.

Carla redeemed EE bonds which qualify for the educational exclusion. The redemption consisted of $14,000 principal and $6,000 interest. The net qualifying educational expenses are $10,000. Her AGI is below the threshold for phase - out of the exclusion. The taxable interest is A. $2,400. B. $0. C. $3,000. D. $6,000