Starting in $2013,$ 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 $$4,000$ is used for room and board. Chuck and Luane's AGI, before the educational savings bond exclusion, is $$149,600.$ Review $135,$ and answer the following questions:

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

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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".