Shaun is a student who has received an academic scholarship to State University.The scholarship paid $14,000 for tuition,$2,500 for fees,and $1,000 for books.In addition,Shaun's dormitory fees of $8,500 were paid by the University when he agreed as a condition of receiving the dormitory fees to counsel freshman on campus living.What amount must Shaun include in his gross income?

Question

Quizplus · Accepted Answer

The $8,500 for dormitory fees must be included in Shaun's gross income because it was a payment for services rendered (counseling freshmen), which is taxable. The other amounts are scholarships for tuition, fees, and books, which are not taxable.

Shaun Is a Student Who Has Received an Academic Scholarship