1. Mr. Ainspan is a college student working on a degree in accounting. He received the following in 2016: -A $4,000 scholarship used for tuition at State University -A $1,000 scholarship used for fees and books -An $8,000 fellowship used for his room and board Compute the amount Mr. Ainspan must include in income for 2016.

A) $8,000

B) $5,000

C) $13,000

D) $9,000

2. The following information is available for Ann Drury for 2016:

	Salary	$36,000
	Premiums paid by employer on group-term life insurance in excess of $50,000	500
	Proceeds from state lottery	5,000

How much should Drury report as gross income on her 2016 tax return?

A) $36,000

B) $36,500

C) $41,000

D) $41,500

3. Ms. Green is single and over 65 years old. She received the following income in 2016:

	Interest from certificates of deposit	$3,000
	Tax-exempt interest	6,000
	Taxable dividends	5,000
	Taxable pension	20,000
	Wages from consulting work	9,000
	Social security	14,000

She did not have any adjustments to income. What is the taxable amount of Ms. Green's social security?

A) $7,000

B) $7,650

C) $9,000

D) $11,900