Would this allow him to meet the 2nd requirement ?
The student didn't spend the $70,000 on support. He put it in the bank.
For the qualifying child rules (full time student under 24) , it doesn't matter how much he earned. What matters is how much he spent on support. Money he put into savings and investment does not count as support he spent on him self.
The support value of the home, provided by the parent, is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.
The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf
