Fabio, a 50-year-old married taxpayer, purchased a Series I savings bond 20 years ago. Upon maturity he received $112,000 in principal and $38,000 in interest. He used $75,000 of the proceeds to pay for his dependent sons qualified higher education tuition and course textbooks, The tuition payment was made in the same year the bond proceeds were received. The remaining amount he re-invested in municipal bonds. Calculate the amount of bond proceeds Fabio must include in taxable income, assuming his AGI is below the phase-out thresholds.