Jesse, age 19, is a full-time graduate student at City University. During 2014, he received the following payments:
State scholarship for 10 months (tuition and books): $4,000
Loan from college financial aid office: 2,000
Cash support from parents: 2,500
Cash award for being the outstanding resident adviser: 1,000
= $9,500
Jesse served as a resident advisor in a dormitory and, therefore, the university waived the $2,500 charge for the room he occupied. What is Jesse's adjusted gross income for 2014?
a. $5,000
b. $1,000
c. $12,000
d. $3,500
e. None of these choices are correct.
Answer: b. $1,000