Shaun Is a Student Who Has Received an Academic Scholarship

question 7

Multiple Choice

Shaun is a student who has received an academic scholarship to State University.The scholarship paid $14,000 for tuition,$2,500 for fees,and $1,000 for books.In addition,Shaun's dormitory fees of $8,500 were paid by the University when he agreed as a condition of receiving the dormitory fees to counsel freshman on campus living.What amount must Shaun include in his gross income?

• A) $9,500
• B) $11,000
• C) $2,500
• D) $8,500
• E) Zero - none of the benefits are included in gross income.

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Definitions:

Female-Headed Households

Households led by women, which may experience different economic and social conditions compared to households headed by men.

Married Couples

Two individuals legally joined in matrimony, recognized legally, socially, or religiously, who typically share a close personal relationship.

Transitory Income

Income that is temporary or not expected to continue at the same level in the future, often affecting consumer behavior and economic decisions.

Permanent Income

An individual's average lifetime income, estimated as a constant amount that would maintain the consumer's current standard of living.