Accounting Question West LA College Accounting 015 Spring 2021 Midterm Exam Question 4

4.  Sarah receives a $8,000 per year scholarship from City University. The university specifies that $2,000 is for tuition, books, supplies, and equipment for classes. The other $6,000 is for room and board. As part of the condition of the scholarship, Sarah must also work ten hours per week as a grader, for which she is paid $5,500 for the year. Of the total amount received, Sarah may not exclude

a. $7,500.

b. $11,500.

c. $13,500. 

d. $5,500.