Cecil cashed in a Series EE savings bond with a redemption value of $18,500 and an original cost of $12,950.

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:

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 $63,600.

AMOUNT OF INTERESt TO BE INCLUDED

b.	Assume the same facts in part (a), except Cecil plans to spend $5,550 of the proceeds to pay his sons tuition at State University, and Cecil estimates his modified adjusted gross income at $58,200. AMOUNT OF INTERESt TO BE INCLUDED