Graham has accepted an offer to do graduate work in the chemistry department at State University....

 

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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? O A. $3,500 B. $8,500 C. $5,000 O D. $0-none of these benefits are included in gross income. 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? O A. $3,500 B. $8,500 C. $5,000 O D. $0-none of these benefits are included in gross income.

Answer rating: 100% (QA)

The correct option is 3500 Explanation As per tax rules under Section ... View the full answer