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Mary Green is a full-time undergraduate student at Clayton State University.

Mary Green is a full-time undergraduate student at Clayton State University. Mary is an honor student and received

a $9,000-per-year scholarship. The scholarship award pays for Mary’s tuition ($6,000), books ($1,000), equipment ($1,200), and incidental expenses ($800).

a:   Explain how each of the amounts shown above would be treated for tax purposes.

b:   Calculate the total amounts that should be shown in Mary’s gross income.

 
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