ACCT 441 Tax Research Problem Requirements:

1) Write a letter to Hank explaining which amounts are taxable and which should be included on his return. Must be in proper letter form.

2) Write a memo to the tax file (see example) supporting your conclusions about the taxability of the amounts.

3) Prepare a short presentation with visual aids (PowerPoint, etc.) explaining to Hank the tax consequences of the amounts.

Information: Hank is a graduate accounting student at Saluki State University. Saluki State awarded Hank a $1,000 scholarship. Hank also works as a half-time teaching assistant in the School of Accountancy at Saluki State. He is paid $7,000 per year and his tuition was waived ($8,000). The salary is equal to that paid to other prat-time instructors. Hank paid $500 for books and supplies and incurred living expenses of $7,400.