Problem $5-73($LO $5-3)($Algo$)$

For each of the following situations, indicate how much the taxpayer is required to include in gross income:

Note: Leave no answer blank. Enter zero if applicable.

Required:

Steve was awarded a $$7,700$ scholarship to attend State Law School. The scholarship pays Steve's tuition and fees.

Hal was awarded a $$15,800$ scholarship to attend State Hotel School. All scholarship students must work $30$ hours per week at the School residency during the term.