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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Proportional Tax: Definition & Examples

from Business Law: Help and Review

Chapter 23 / Lesson 23
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