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Adrian was awarded an academic scholarship to State University for the 2016-2017 academic year. He received $6,500 in August and $7,200 in December 2016. Adrian

Adrian was awarded an academic scholarship to State University for the 2016-2017 academic year. He received $6,500 in August and $7,200 in December 2016. Adrian had enough personal savings to pay all expenses as they came due. Adrians expenditures for he relevant period are as follows:

Tuition, August 2016: $3,700

Tuition, January 2017: $3,750

Room and board:

August-December 2016: $2,800

January-May 2017: $2,500

Books and educational supplies:

Aug-Dec 2016: 1,000

Jan-May 2017: $1,200

Determine the effect on Adrian's gross income for 2016 and 2017.

Regarding Adrian's scholarship, indicate whether the following statements are "True" or "False".

A. When Adrian received the money in 2016, his total expenses for the academic year were not known. Therefore, he is allowed to defer reporting the income until 2017, when the uncertainty is resolved.

True

B. The amount Adrian spent on tuition, books, and educational supplies in 2017 will not be excludible, since the scholarship was awarded in 2016.

False

C. Adrian may exclude from gross income the amount used for tuition, books, and educational supplies in 2016 and 2017.

True

D. The amount Adrian spent on room and board is excludible.

False

What amount, if any, must Adrian include in his gross income for 2016 and 2017? If an amount is zero, enter "0".

2016: $X

2017: $X

I need help finding the X's. The answers are not 2016: 2800 and 2017: 2500. Please show how you got your answers. Thank you!

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