icole is a student at USB Law School; she receives a $52,000 scholarship. Of the $52,000, $40,000 is used for tuition, $5,000 is used for books, and $7,000 is used for room and board. How much of the scholarship is excluded from taxable income for Nicole? a.$52,000 b.$5,000 c.$7,000 d.$45,000 e.$47,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. Nicole is a student at USB Law School; she receives a $52,000 scholarship. Of the $52,000, $40,000 is used for tuition, $5,000 is used for books, and $7,000 is used for room and board. How much of the scholarship is excluded from taxable income for Nicole?

a.$52,000
b.$5,000
c.$7,000
d.$45,000
e.$47,000
 
2. To pay for college, Henry received the following:

$1,000 scholarship from the Thespian Club to pay for books
$4,000 scholarship from the Elks Lodge for tuition
$5,000 worth of room and board as a dorm supervisor through a work-study program

How much income must Henry report on his tax return?
a.$4,000
b.$0
c.$5,000
d.$6,000
e.$10,000
 
3. Robert works for American Motors. American Motors pays a $1,200 premium on Robert's health insurance in 2021. Robert has an operation on his big toe in 2021 that cost $7,200. The insurance company paid for $6,800 of it. Which one of the following is true for 2021?
a.Robert must claim the $1,200 premium and the $6,800 insurance payment as income.
b.Robert must claim the $1,200 premium paid by his employer as income.
c.Robert must claim the $6,800 paid by the insurance company for the operation as income.
d.None of these events are taxable on his 2021 return.
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