Ann is a graduate economics student at State University. State University awarde
ID: 2507891 • Letter: A
Question
Ann is a graduate economics student at State University. State University awarded her a $1,000 scholarship. In addition, Ann works as a half-time teaching assistant in the Economics department at State University. She is paid $7,000 per year and her tuition is waived. The salary is equal to that paid other part-time instructors. Her tuition would be $8,000 were it not for the waiver. Ann paid $500 for her books and supplies and she incurred living expenses of $7,400. Determine how much gross income Ann must report.
Explanation / Answer
Gross Income that should be reported by Ann = $8000.
And the $1000 is considered as the tution fee for her and will be reported as expense along with living expenses and books and supplies purchased.