Donna is a student at Eastern State University. She receives a $4,000 academic scholarship from the Silverman Foundation. She also has a $2,000 assistantship to grade and tutor for the Department of Economics. Tuition, books, fees, and supplies are $5,000. How much gross income must Donna recognize from the scholarship and assistantship?

Question

Quizplus · Accepted Answer

Donna must recognize the full amount of the academic scholarship and assistantship as gross income, which is $4,000 + $2,000 = $6,000. However, she can reduce this amount by the cost of tuition, books, fees, and supplies, which is $5,000. Therefore, the amount of gross income that Donna must recognize is $6,000 - $5,000 = $1,000. The correct answer is B).

Donna Is a Student at Eastern State University