Mei-Ling Is a Candidate for a Master's Degree in Taxation

question 90

Multiple Choice

Mei-Ling is a candidate for a master's degree in taxation from Western State University.During the current year she receives the following cash payments:
$$\begin{array} { l r } \text { State allocated tuition waiver scholarship } & \$ 2,200 \\\text { A Microsoft scholarship (for fees and books) } & 800 \\\text { Check from her grandmother } & 1,700 \\\text { Loan proceeds from the college financial aid office } & 2,500 \\\text { Prize won from a "rub and scratch" lottery ticket } & 300 \\\text { Loan from her roommate } & 100 \\\text { Interest received from National Bank CD } & 400\end{array}$$
How much must be included in Mei-Ling's gross income?

• A)$ - 0-
• B)$ 700
• C)$1,500
• D)$3,700
• E)$8,000

---

Definitions:

Contract Remedies

Legal actions or compensation methods available to enforce, rectify, or compensate for the breach of a contract.

Express Agency

A principal-agent relationship formed by explicit written or oral agreement between the agent and the principal.

Implied Authority

Authority of an agent that is not explicitly stated but is deemed necessary to carry out express authority.

Duty of Performance

An obligation of a party in a contract to fulfill the terms and conditions as agreed within the contract.