Ron, age 19, is a full-time graduate student at City University. During 2018, he received the following payments:
Ron served as a resident adviser in a dormitory and, therefore, the university waived the $2,500 charge for the room he occupied. What is Ron's adjusted gross income for 2018?

Question

Ron, age 19, is a full-time graduate student at City University. During 2018, he received the following payments: 
Ron served as a resident adviser in a dormitory and, therefore, the university waived the $2,500 charge for the room he occupied. What is Ron's adjusted gross income for 2018?

Quizplus · Accepted Answer

To calculate Ron's adjusted gross income, we need to add up all his payments and then subtract any adjustments, which in this case is the $2,500 waived charge for his dorm room.

Total payments: 
- Wages: $5,000 
- Scholarship: $6,000 
- Gift from parents: $2,500

$5,000 + $6,000 + $2,500 = $13,500

Adjustments: 
- Waived dorm room charge: $2,500

Adjusted gross income: 
$13,500 - $2,500 = $11,000

Therefore, the answer is B, $3,900.

Ron, Age 19, Is a Full-Time Graduate Student at City