ohn is preparing to play football at State University, which has a nationally ranked football program. He has been offered a generous scholarship, including 5 years of free tuition, free books, and all his fees covered. In addition, they are providing John with free room, board, and meals in a special building for football players. Also, they are giving him a $20,000 a year stipend for incidental costs. State University has a flat fee for all on-campus housing of $4,000 a semester, and meals cost $2,000 per semester. Most students are in older buildings with old furniture. The football player building has large spacious accommodations, steak every night for dinner, the best cuts of meat, and catered coffee from Starbucks. Discuss how much, if anything, John should report as gross income. Next, analyze the law in this area from a tax policy perspective, discussing issues like accession to wealth and fairness.

Answer rating: 100% (QA)

Taxable Income Analysis for John 1 Scholarship Generally scholarships used for tuition books and fee... View the full answer