Graham Has Accepted an Offer to Do Graduate Work in the Chemistry

question 28

Multiple Choice

Graham has accepted an offer to do graduate work in the chemistry department at State University.The chemistry department offered Graham a $5,000 tuition reduction and $3,500 toward the cost of room and meals.Under the terms of the scholarship Graham must work in the chemistry labs during the summer as a research assistant.What amount must Graham include in his gross income?

• A) $8,500
• B) $5,000
• C) $3,500
• D) $2,500
• E) Zero - none of the benefits are included in gross income.