In 2018, Mr. and Mrs. Drake redeem Series EE bonds and receive $14,000, consisting of $10,000 of principal and $4,000 of interest. Net qualifying educational expenses total $12,600. They are married filing jointly and have other AGI of $124,300. How much interest income must be included in their income in 2018 because of the redemption of savings bonds?

a. $4,000

b. $2,520

C. $1,480

d. $ 400

e. None of the above