Shaun is a student who has received an academic scholarship to State University. The scholarship paid $14,900 for tuition, $2,450 for fees, and $1,900 for books. In addition, Shaun's dormitory fees of $10,800 were paid by the University when he agreed as a condition of receiving the dormitory fees to counsel freshman on campus living. What amount must Shaun include in his gross income?

Multiple Choice

1. $12,700.
2. $13,250.
3. $2,450.
4. $10,800.
5. Zero - None of these benefits is included in gross income.