Starting in 1998 jackson and sasha have been purchasing, Ask an Expert

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Starting in 1998, Jackson and Sasha have been purchasing Series EE bonds in their name to use for the higher education of their son, Pedro, who currently is age 18. In 2016, they cash in $18,000 of the bonds to use for tuition, fees, and room and board. Of this amount, $4,000 represents interest. Of the $18,000, $10,800 is used for tuition and fees, and $7,200 is used for room and board. Jackson and Sasha AGI, before the educational savings bond exclusion, is $98,000.

If an amount is zero, enter "0".

a. If Jackson and Sasha file a joint, how much is the savings bond exclusion?

Round any division to three decimal places and use rounded amount in subsequent computations. if required, round your final answer to the nearest dollar.

b. Assume that Jackson and Sasha purchased the bonds in Pedro's name. Determine the tax consequences for Pedro.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M92042011

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