Ann is a graduate economics student at State University. State University awarded her a $1,000 scholarship. In addition, Ann works as a half-time teaching assistant in the Economics department at State University. She is paid $7,000 per year and her tuition is waived. The salary is equal to that paid other part-time instructors. Her tuition would be $8,000 were it not for the waiver. Ann paid $500 for her books and supplies and she incurred living expenses of $7,400. What is Ann's tax consequence of amounts received? (Any amounts taxable? Any amounts deductible? Any amounts should be included in her return? Related tax regulations?)