Mr. Hines received a $6,200 grant from a local university for the fall of 2016. Mr. Hines was a...
Question:
Mr. Hines received a $6,200 grant from a local university for the fall of 2016. Mr. Hines was a candidate for a degree and was required to be a research assistant, for which services he received payment under the grant. The $6,200 grant provided the following:
| Tuition | $3,600 |
| Books and supplies | 500 |
| Pay for services as research assistant | 2,100 |
Mr. Hines spent the entire $6, 200 on tuition, books, and supplies. What amount must Mr. Hines include in his income for 2016?
a. $2,100
b. $2,600
c. $3,200
d. $3,600
Taxable Income:
Taxable income for individuals is determined based on income which has been received as a result of work performed. This income amount is then subject to deductions for expenses incurred in the generation of this income.
Answer and Explanation:
What amount must Mr. Hines include in his income for 2016?
a. $2,100
$2,100 should be recognised by Mr. Hines as this amount directly relates to...
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