Graham has accepted an offer to do graduate work in the chemistry department at State University. 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 Graham must work in the chemistry labs during the summer as a research assistant. What amount must Graham include in his gross income?

Question

Quizplus · Accepted Answer

The scholarship exclusion applies to the tuition reduction but not the cost of room and board.

Graham Has Accepted an Offer to Do Graduate Work in the Chemistry