During tax year $204,$ taxpayer Arnold Anderson, age $76,$ receives income amounts as set out below.

Fully taxable pension

Interest income $($bank savings account$)$

Bond interest income $($County of Chesterfield$)$

$$21,200$

$1,000$

$500$

$12,000$

How much of the $$12,000$ of social security benefits will be classified as taxable gross income on Arnold's $204$ Form $1040?$

A

$$6,000$

B

$0$

C $12,000$

D $1,850$

E None of the above