In 2012, Hugo and Marlene purchased Series EE bonds, and in 2016 redeemed the bonds, receiving $ 440 of interest and $4,060 of principal. Their income from other sources totaled $35,000. They paid $5,000 in tuition and fees for their dependent daughter. Their daughter is a qualified student at State University.

a.) How much of the Series EE bond interest is excludable?

b.) Assuming that the daughter received a $3,200 scholarship, how much of the interest is excludable? Ignore any tax credits that might be available.

c.) Assuming the daughter received the $3,200 scholarship and that the parents' income from other sources is $123,360 how much of the interest is excludable?