Question

Donna receives a need based scholarship of $10,000 that covers half of her tuition. She also receives a total stipend of $7,000 for her job as a resident advisor in the campus dormitories. In addition, she receives free room and board in the dorms (a fair market value of $12,000) where she is required to live. The taxable amount of these payments to Donna is ______ Question 16 options: $29,000 $19,000 $7,000 some other amount

Answer 1

$7,000

Step-by-step explanation:

Since in the given situation it is mentioned that the amount of $7,000 represent the stipend so the taxable amount would be equivalent to the stipend amount i.e. $7,000 as if the payment made to the graduate students like teaching, researching, or any other services would be eligible for tax purpose

Therefore the same would be relevant