Question

Adrian was awarded an academic scholarship to state university for the 2017–2018 academic year. he received $6,500 in august and $7,200 in december 2017. adrian had enough personal savings to pay all expenses as they came due. adrian's expenditures for the relevant period were as follows: tuition, august 2017 $3,700 tuition, january 2018 3,750 room and board august–december 2017 2,800 january–may 2018 2,500 books and educational supplies august–december 2017 1,000 january–may 2018 1,200 determine the effect on adrian's gross income for 2017 and 2018.

Answer 1

For 2017:

Scholarship - $6,500

Tuition – (3,700)

Books and supplies – (1,000)

Gross income - $1,800

For 2018:

Scholarship - $7,200

Tuition – (3,750)

Books and supplies – (1,200)

Gross income - $2,250

Adrian’s gross incomes for 2017 is $1,800 and 2018 is $2,250.