Question

Jena is a full-time undergraduate student at State University and is claimed by her parents as a dependent. Her only source of income is a $10,000 athletic scholarship ($1,000 for books, $5,500 tuition, $500 student activity fee, and $3,000 room and board). Jena's gross income for the year is:

a. $10,000.
b. $4,000.
c. $3,000.
d. $500.
e. None of these.

Answer 1

Jena's gross income for the year is $10,000.

Step-by-step explanation:

Jena's gross income for the year is $10,000. The income from her athletic scholarship is considered taxable income. So, she needs to include the full amount of the scholarship when calculating her gross income.

The scholarship includes $1,000 for books, $5,500 for tuition, $500 for the student activity fee, and $3,000 for room and board. When added together, these amounts equal $10,000, which is Jena's gross income for the year.