Donna Is a Student at Eastern State University

question 122

Multiple Choice

Donna is a student at Eastern State University. She receives a $4,000 academic scholarship from the Silverman Foundation. She also has a $2,000 assistantship to grade and tutor for the Department of Economics. Tuition, books, fees, and supplies are $5,000. How much gross income must Donna recognize from the scholarship and assistantship?

• A)$- 0 -
• B)$1,000
• C)$2,000
• D)$5,000
• E)$6,000

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Definitions:

Residual Value

The estimated value that an asset will realize upon its sale at the end of its useful life, important in calculating depreciation.

Depreciation Expense

The distribution of a tangible asset's cost over its lifespan, treating it as an expenditure.

Double Declining-balance

A method of accelerated depreciation that doubles the straight-line depreciation rate.