Cecil cashed in a Series EE savings bond with a redemption value of $14,000 and an original cost of $9,800. For each of the following independent scenarios, calculate the amount of interest Cecil will include in his gross income assuming he files as a single taxpayer:

a) Cecil plans to spend all of the proceeds to pay his son’s tuition at State University.

Cecil’s son is a full-time student, and Cecil claims his son as a dependent.

Cecil estimates his modified adjusted gross income at $63,100.

b) Assume the same facts in part (a), except Cecil plans to spend $4,200 of the proceeds to pay his son’s tuition at State University, and Cecil estimates his modified adjusted gross income at $60,600.