Q 123

Natasha graduated at the top of her high school class and received a $10,000 scholarship to attend the college of her choice. Natasha decided to attend State University and spent her $10,000 as follows: How much of the $10,000 should Natasha report as gross income?
A) $10,000
B) $3,400
C) $2,500
D) $1,500
E) zero

Q 124

Kayla receives an $18,500 scholarship from the state university. The university specifies that $8,500 is for tuition and books, while $10,000 is for room and board. In addition, Kayla works part-time at the campus library and earns $5,000. How much is Kayla required to include in her gross income?
A) zero
B) $5,000
C) $15,000
D) $23,500

Q 125

Meg was the beneficiary of a $50,000 life insurance policy when her father died at the end of last year. The insurance company gives her the option of taking the $50,000 as a lump sum immediately or receiving an annuity of $8,000 per year for 12 years beginning in 2018. Meg takes the annuity option. What amount must Meg include in her income in 2018?
A) 0
B) $3,000
C) $3,833
D) $8,000