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Laura is a student at a state university. In 2017, she received a scholarship of

ID: 2342489 • Letter: L

Question

Laura is a student at a state university. In 2017, she received a scholarship of $6,000 for tuition and fees and an assistantship for $3,000. What is the amount that Laura must report in income?

Multiple Choice

$9,000.

$0.

$3,000.

$6,000.

On December 30, 2017, Robert agreed to repair a damaged house wall and started to work on that date. He will finish and get paid for the job in January of 2018. Robert needs to record the income received from his work in the year:

Multiple Choice

2017.

Half in 2017 and the other half in 2018.

He does not have to report the income at all.

2018.

Explanation / Answer

Part - (1) The correct answer is $3,000

Laura should report $3,000 of fees and an assistantship as an income, since scholarship amount is exempted.

Part - (2) The correct answer is 2018

He is assumed to have started the work in 2018, hence the income is to be recorded in 2018.