Carol attends State U. and received a $10,000 scholarship for her senior year that began in September, year 1. Up to the time of her graduation in May, year 2, Carol had paid the following expenses for the two semesters:
1^st semester: $3,000 tuition; $1,550 room and board in a dormitory; $400 for books and fees.
2^nd semester: $3,000 tuition; $1,700 living expenses in an apartment; $250 for books and fees.
She used the remaining money from the scholarship to purchase clothes for job hunting in April, year 2.
Does Carol have any income as a result of the scholarship? If yes, how much is her income and in what years would it be included in income?

Question

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The Answer of Carol attends State U. and received a $10,000 scholarship for her senior year that began in September, year 1. Up to the time of her graduation in May, year 2, Carol had paid the following expenses for the two semesters: 1^st semester: $3,000 tuition; $1,550 room and board in a dormitory; $400 for books and fees. 2^nd semester: $3,000 tuition; $1,700 living expenses in an apartment; $250 for books and fees. She used the remaining money from the scholarship to purchase clothes for job hunting in April, year 2. Does Carol have any income as a result of the scholarship? If yes, how much is her income and in what years would it be included in income?

Carol Attends State U