Jena is a full-time undergraduate student at State University and is claimed by her parents as a dependent.Her only source of income is a $10,000 athletic scholarship ($1,000 for books, $5,500 tuition, $500 student activity fee, and $3,000 room and board).Jena's gross income for the year is:
A)$10,000.
B)$4,000.
C)$3,000.
D)$500.
E)None of the above.

Question

Quizplus · Accepted Answer

The portion of the scholarship used for room and board ($3,000) is considered taxable income. The amounts used for tuition, fees, and books are not taxable.

Jena Is a Full-Time Undergraduate Student at State University and Is