Which of the Following Would Render an Otherwise Nontaxable Scholarship/fellowship

question 71

Multiple Choice

Which of the following would render an otherwise nontaxable scholarship/fellowship at least partially taxable: I.The recipient is engaged in a post-doctoral research effort (i.e., not a degree candidate) .
II) The recipient used scholarship proceeds to pay for books
III) The recipient used scholarship proceeds to pay for room and board.

• A)I.only
• B)III.only
• C)I.and II.only
• D)I.and III.only
• E)I., II.and III.

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Definitions:

Variable Production Costs

Expenses that fluctuate in direct proportion to production volume, like labor and materials.

Break-even

The point at which total cost and total revenue are equal, meaning there is no net loss or gain.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Absorption Costing

An approach in accounting that comprises all costs of manufacturing, like direct materials, direct labor, and both types of manufacturing overheads (variable and fixed), in determining a product's cost.