c$.$ If an employer provides a scholarship to an employee who is on leave of absence$,$ is that scholarship taxable?

B$.$ It is likely that such a scholarship will be viewed as compensation for future services, and will, therefore, be taxable. The expenses incurred by the employee may be deductible education expenses.

scholarship money will be nontaxable to the employee.

d$.$ Is the amount paid by a university to students for services excludable from the students' gross income?

A$.$ No$.$ At least $85\%$ of the amounts will be included as taxable income under dividend income.

B$.$ Yes. The amounts will be distributed as tax$-$free providing the money goes back to the university for educational purposes.

C$.$ No$.$ The amounts will normally be taxable compensation.

D$.$ Yes. The amounts are considered a gift for educational purposes.