Question

Ron, age 19, is a full-time graduate student at City University. During 2019, he received the following payments or benefits:

Cash award for being the outstanding resident adviser      $ 500

Resident adviser dormitory charge waived                        2,500

State scholarship for ten months (tuition and books)         6,000

State scholarship (meals allowance)                                   2,400

Loan from college financial aid office                               3,000

Cash support from parents                                                  3,000

                                                                                        $17,400

Ron served as a resident advisor in a dormitory, which meant he was required to live in one of the rooms. What is Ron’s gross income for 2019 from these receipts?

a.         $2,900.

b.         $3,900.

c.         $9,000.

d.         $12,400.

e.         $15,400.

Answer 1

Answer : a $2,900..

Explanation :

	Included or Not included	Reason	Amount
Cash award for being the outstanding resident adviser	Included		$ 500
Resident adviser dormitory charge waived	Not included	As it is provided to help the employer
State scholarship for ten months (tuition and books)	Not included	Exempt
State scholarship (meals allowance)	Included		$2,400
Loan from college financial aid office	Not included	Not a income
Cash support from parents	Not included	Not taxable
Ron’s gross income for 2019			$2,900