Cecil cashed in a Series EE savings bond with a redemption value of $12,500 and an original cost of $8,750.

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.)

b. Assume the same facts in part (a), except Cecil plans to spend $3,750 of the proceeds to pay his sons tuition at State University, and Cecil estimates his modified adjusted gross income at $58,500.

Amount of interest to be included in gross income

_________________