Kent "Flounder" Dorfman is a full-time student at Faber College. He is a senior and a member of Delta Tau Chai fraternity. The Deltas awarded Kent a $35,000 scholarship called "The Dean Wormer Double Secret Probation Memorial Scholarship". In the current year, Kent pays the following amounts to attend Faber College: Tuition - $26,000; Required lab fees - $300; Required books and supplies - $1,000; Room and board - $7,500. How much of the scholarship, if any, is taxable for federal income tax purposes? Explain how you arrived at your answer and cite at least one section of the Internal Revenue Code to support your answer. How much of the scholarship, if any, is NOT taxable for federal income tax purposes? Explain how you arrived at your answer.