Ask Question
24 September, 01:06

Graham has accepted an offer to do graduate work in the chemistry department at StateUniversity. The chemistry department offered Graham a $5,000 tuition reduction and$3,500 toward the cost of room and meals. Under the terms of the scholarship Grahammust work in the chemistry labs during the summer as a research assistant. What amountmust Graham include in his gross income?

A) $5,000

B) $2,500

C) $3,500

D) $8,500

E) Zero - none of the above benefits is included in gross income.

+4
Answers (1)
  1. 24 September, 01:20
    0
    The answer is: C) $3,500

    Explanation:

    According to the general rule section 117 (d) (1), tuition reductions are not included in the gross income. So the $5,000 tuition reduction will not be included in Graham's gross income.

    Graham only has to record as income the $3,500 he will get to cover the costs of room and meals.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Graham has accepted an offer to do graduate work in the chemistry department at StateUniversity. The chemistry department offered Graham a ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers