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Taxpayer, single and age 4 6 , reports adjusted gross income of $ 1 4 0 , 0 0 0 for 2 0 x 4

Taxpayer, single and age 46, reports adjusted gross income of $140,000 for 20x4. During
20x4, Taxpayer redeems several Series EE U.S. savings bonds, receiving $18,000 of principal and $2,000 of interest income. Assuming that Taxpayer has $18,000 of qualifying higher education expenses, how much of the $2,000 of interest income may she exclude on her 20x5 federal income tax return?
A. $200
B. $1,800
C. $0
D. $2,000
E. None of the above

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