Problem $5-54($LO$.2)$

Starting in $2012,$ Chuck and Luane have been purchasing Series EE bonds in their name to use for the higher education of their daughter Susie, who currently is age $18.$ During the year, they cash in $$12,000$ of the bonds to use for freshman year tuition, fees, and room and board. Of this amount, $$5,000$ represents interest. Of the $$12,000,$ $$8,000$ is used for tuition and fees, and $$4,000$ is used for room and board. Chuck and Luane's AGI, before the educational savings bond exclusion, is $$142,200.$ Review $135,$ and answer the following questions.

If an amount is zero, enter $"0".$

Question Content Area

a$.$ Chuck and Luane, who will file a joint return, and Susie want to understand the tax consequences. For each statement below, help them by indicating whether the statement is "True" or "False".

$$ The Series EE savings bonds qualify as educational savings bonds.

True

$$ The room and board for a dependent qualify as higher education expenses.

False

$$ Since the redemption amount exceeds the qualified higher education expenses, only part of the interest qualifies for exclusion.

True

$$ Chuck and Luane's savings bond exclusion is not subject to any phase$-$out provision.

False

If Chuck and Luane file a joint return, how much is the savings bond exclusion?

Round any division to five decimal places. Round your final answer to the nearest dollar.

$fill in the blank $52684$af$6201$ff$95\_5$