Shaun is a student who has received an academic scholarship to State University. The scholarship paid $20,800 for tuition, $5,400 for fees, and $1,280 for books. In addition, Shaun's dormitory fees of $10,500 were paid by the university when he agreed to counsel freshman on campus living. What amount must Shaun include in his gross income?

Question

Quizplus · Accepted Answer

The dormitory fees of $10,500 paid by the university for Shaun's counseling services are considered compensation for services and must be included in his gross income. The scholarship amounts for tuition, fees, and books are not included in gross income.

Shaun Is a Student Who Has Received an Academic Scholarship