Graham has accepted an offer to do graduate work in the chemistry department at State University. The chemistry department offered Graham a scholarship that will pay $5,000 toward his tuition, $500 toward his university fees, and $3,500 toward the cost of room and meals. Under the terms of the scholarship, Graham must work in the chemistry labs during the summer. What amount must Graham include in his gross income? a) $4,000 b) $9,000 c) $5,500 d) $3,500
Graham has accepted an offer to do graduate work in the chemistry department at State University. The chemistry department offered Graham a scholarship that will pay $5,000 toward his tuition, $500 toward his university fees, and $3,500 toward the cost of room and meals. Under the terms of the scholarship, Graham must work in the chemistry labs during the summer. What amount must Graham include in his gross income? a) $4,000 b) $9,000 c) $5,500 d) $3,500
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 1CPA
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GENERAL ACCOUNT
Transcribed Image Text:Graham has accepted an offer to do graduate work in the
chemistry department at State University. The chemistry
department offered Graham a scholarship that will pay $5,000
toward his tuition, $500 toward his university fees, and $3,500
toward the cost of room and meals. Under the terms of the
scholarship, Graham must work in the chemistry labs during the
summer. What amount must Graham include in his gross income?
a) $4,000
b) $9,000
c) $5,500
d) $3,500
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