Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 5, Problem 33P
a.
To determine
Determine the amount to be included in the gross income of S because of the scholarship received.
b.
To determine
Determine the effect of scholarship on the gross income of W and his father.
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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 programHow 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…
6. Leslie who is single, finished graduate school this year and began repaying her student loan. The proceeds of the loan were used to pay her qualified higher education expenses. She has not received any type of educational assistance or scholarships. The amount of interest paid during the year amounted to $3,800. What is the amount and classification of her student loan interest education deduction if her modified AGI is $20,000.
Sally was an all-state soccer player during her junior and senior years in high school. She accepted an athletic scholarship from State
University. The scholarship provided the following:
Tuition and fees
$15,000
Housing and meals
$6,000
Books and supplies
$1,500
Transportation
$1,200
a. Determine the effect of the scholarship on Sally's gross income.
Included in/Excluded from
Income
Tuition and fees
Housing and meals
Books and supplies
Transportation
b. Sally's brother, Willy, was not a gifted athlete, but he received $8,000 from their father's employer as a scholarship during the year. The
employer grants the children of all executives a scholarship equal to one-half of annual tuition, fees, books, and supplies. Willy also
received a $6,000 scholarship (to be used for tuition) as the winner of an essay contest related to bioengineering, his intended field of
study. Indicate whether the following statements are "True" or "False" regarding the effect of the scholarships on Willy's and…
Chapter 5 Solutions
Individual Income Taxes
Ch. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Holly was injured while working in a factory and...Ch. 5 - Prob. 9DQCh. 5 - Prob. 10DQ
Ch. 5 - Ted works for Azure Motors, an automobile...Ch. 5 - Prob. 12DQCh. 5 - Eagle Life Insurance Company pays its employees...Ch. 5 - Several of Egret Companys employees have asked the...Ch. 5 - Prob. 15DQCh. 5 - Tammy, a resident of Virginia, is considering...Ch. 5 - Andrea entered into a 529 qualified tuition...Ch. 5 - Prob. 18DQCh. 5 - Prob. 19DQCh. 5 - Valentino is a patient in a nursing home for 45...Ch. 5 - Prob. 21CECh. 5 - Ellie purchases an insurance policy on her life...Ch. 5 - Prob. 23CECh. 5 - Leland pays premiums of 5,000 for an insurance...Ch. 5 - Jarrod receives a scholarship of 18,500 from...Ch. 5 - Prob. 26CECh. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - LO.2 What is the taxpayers gross income in each of...Ch. 5 - LO.2 Donald was killed in an accident while he was...Ch. 5 - Prob. 32PCh. 5 - Prob. 33PCh. 5 - Prob. 34PCh. 5 - LO.2 Leigh sued an overzealous bill collector and...Ch. 5 - LO.2 Determine the effect on gross income in each...Ch. 5 - Prob. 37PCh. 5 - Prob. 38PCh. 5 - Prob. 39PCh. 5 - LO.2 Belinda spent the last 60 days of 2019 in a...Ch. 5 - LO.2 Tim is the vice president of western...Ch. 5 - LO.2 Does the taxpayer recognize gross income in...Ch. 5 - Prob. 43PCh. 5 - Prob. 44PCh. 5 - Prob. 45PCh. 5 - LO.2, 5 Rosas employer has instituted a flexible...Ch. 5 - Prob. 47PCh. 5 - Prob. 48PCh. 5 - Prob. 49PCh. 5 - Prob. 50PCh. 5 - LO.2 Tonya, who lives in California, inherited a...Ch. 5 - Prob. 52PCh. 5 - Prob. 53PCh. 5 - Prob. 54PCh. 5 - Prob. 55PCh. 5 - Prob. 56PCh. 5 - LO.4 Vic, who was experiencing financial...Ch. 5 - Prob. 1RPCh. 5 - Prob. 2RPCh. 5 - Prob. 3RPCh. 5 - Prob. 4RPCh. 5 - Prob. 1CPACh. 5 - Jeffrey Dean, a Masters Degree candidate at North...Ch. 5 - Linda is an employee of JRH Corporation. Which of...Ch. 5 - Kim was seriously injured at her job. As a result...Ch. 5 - Danny received the following interest and dividend...Ch. 5 - Prob. 6CPA
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Similar questions
- Jarrod receives a scholarship of 18,500 from Riggers University to be used to pursue a bachelors degree. He spends 12,000 on tuition, 1,500 on books and supplies, 4,000 for room and board, and 1,000 for personal expenses. How much may Jarrod exclude from his gross income?arrow_forwardReggie receives a 2-year scholarship to Big University. The scholarship stipulates that, to improve his teaching skills, he must spend his first year teaching at an affiliated school. He will be paid his scholarship by the affiliated school based on the level of pay for the teaching duties he is assigned. Upon completion of the first year, Reggie will return to Big University and work on the research required to obtain his degree. During the second year, he will receive his scholarship from Big University. Is Reggies scholarship taxable?arrow_forwardAndrea entered into a 529 qualified tuition program for the benefit of her daughter, Joanna. Andrea contributed 15,000 to the fund. The fund balance had accumulated to 25,000 by the time Joanna was ready to enter college. However, Joanna received a scholarship that paid for her tuition, fees, books, supplies, and room and board. So Andrea withdrew the funds from the 529 plan and bought Joanna a new car. a. What are the tax consequences to Andrea of withdrawing the funds? b. Assume instead that Joannas scholarship did not cover her room and board, which cost 7,500 per academic year. During the current year, 7,500 of the fund balance was used to pay for Joannas room and board. The remaining amount was left in the 529 plan to cover her room and board for future academic years. What are the tax consequences to Andrea and to Joanna of using the 7,500 to pay for the room and board?arrow_forward
- Nora invested $8,000 in a qualified tuition program for the benefit of her son. Four years later her son, Michael withdrew $10,000, the entire balance in the program, to pay his college tuition. How much must Nora and/or Michael include in gross income? Nora: $0 Michael: $0 Nora: $2,000 Michael: $0 Nora: $0 Michael: $2,000 Nora: $2,000 Michael: $8,000 Nora: $0 Michael: $10,000arrow_forwardRebecca is an undergraduate at Big State University. She was awarded a $32,000 "full scholarship" which paid for her: • Tuition: $17,000 • Campus Housing: $6,500 • Books: $2,500 • Meals: $6,000 What amount of the scholarship must Rebecca include in her Gross Income? Group of answer choices. $6,000. $9,000. $12,500. $19,500.arrow_forwardNicole is a student at USB Law School; she receives a $52,000 scholarship for 2018. 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 in 2018? Select one: a. $52,000 b. $47,000 c. $7,000 d. $5,000 e. $45,000arrow_forward
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