Lamr
Lamr
02.11.2019 • 
Business

Adrian was awarded an academic scholarship to state university for the 2015-2016 academic year. he received $6,500 in august and $7,200 in december 2015. adrian had enough personal savings to pay all expenses as they came due. adrian’s expenditures for he relevant period are as follows:
tuition, august 2014: $3,700
tuition, january 2015: $3,750
room and board:
august-december 2014: $2,800
january-may 2015: $2,500
books and educational supplies:
aug-dec 2014: 1,000
jan-may 2015: $1,200
determine the effect on adrian's gross income for 2015 and 2016.
regarding adrian's scholarship, indicate whether the following statements are "true" or "false".
a. when adrian received the money in 2016, his total expenses for the academic year were not known. therefore, he is allowed to defer reporting the income until 2017, when the uncertainty is resolved.
true
b. the amount adrian spent on tuition, books, and educational supplies in 2017 will not be excludible, since the scholarship was awarded in 2016.
false
c. adrian may exclude from gross income the amount used for tuition, books, and educational supplies in 2016 and 2017.
true
d. the amount adrian spent on room and board is excludible.
false
what amount, if any, must adrian include in his gross income for 2016 and 2017? if an amount is zero, enter "0".
2016: $x
2017: $x

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