I:4-41 Research Grant. Otto is a biology professor at State University. The university gave Otto a sabbatical leave to study the surface of the flatworm. During the year he received a salary of $50,000, which is less than his regular salary of $56,000. Otto also received a grant to cover expenses associated with the study. The grant was $2,000, as were his related expenses. Otto also incurred memberships and other employment related expenses totaling

$1,000. How much must Otto include in gross income?