as the HOMEWORKLIB POLICY, the only first question should be answered. kindly take note of it
Answer A:
Andrea must consider $10,000 (25000-15000) in her gross income.
Answer B:
As Joanna’s scholarship did not cover her room and board which cost $7500 per academic year, neither Andrea nor Joanna has tax consequences.
CHAPTER 5 Gross Income: Ex 17. LO.2 Andrea entered into a $ 529 qualified tuition program...
Holly entered into a 529 qualified tuition program for the benefit of her daughter, Rebecca. Holly contributed $15,000 to the fund. The fund balance had accumulated to $25,000 by the time Rebecca was ready to enter college. However, Rebecca received a scholarship that paid for her tuiton, fees, books, supplies, and room and board. So Holly withdrew the funds from the 529 plan and bought Rebecca a new car. A. What are the tax consequences to Holly for withdrawing the...
Part B. Gross Income Inclusions & Exclusions For each Q-6 through Q-19 below, determine whether the item described should be INCLUDED IN or EXCLUDED FROM the Gross Income of the taxpayer who receives the item. • Darken Box A on the Scantron sheet if the item should be INCLUDED IN gross income • Darken Box B on the Scantron sheet if the item should be EXCLUDED FROM gross income 6. $25,000 scholarship for tuition and books received by a full-time...