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:
|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?
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?
$2,100 should be recognised by Mr. Hines as this amount directly relates to...
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from Business Law: Help and ReviewChapter 23 / Lesson 23