Question
19) In each of the following situations, what amount must be included in the taxpayers gross income? (a) Laverne received a $1,500 tuition scholarship to
19) In each of the following situations, what amount must be included in the taxpayers gross income?
(a) Laverne received a $1,500 tuition scholarship to attend Fredonia Law School. In addition, Fredonia paid Laverne $4,000 per year to work part-time in the campus cafeteria.
(b) Marvin received a $10,000 football scholarship for attending Western University. His scholarship covered tuition, room, board, laundry, and books. $4,000 of the scholarship was designated for room and board and laundry. It was understood that Marvin would participate in the schools intercollegiate football program, but he was not required to do so.
(c) Nightingale Nursing School requires all third-year students to work 20 hours per week at an affiliated local hospital. Each student is paid $10 per hour. Ruth, a third-year student, earned $10,000 for such work during the year.
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