Zacharia, age 19, is a full-time student at Central College and a candidate for a bachelor's degree. During 2014, he received the following payments:
Wages $7,000
Central scholarship for ten months - tuition and books 5,500
Central scholarship for ten months - room and board 4,000
Loan from college financial aid office 4,500
Cash support from parents 3,000
Cash dividends 3,000
Cash prize awarded in a contest 250
$27,250
What is Zacharia's adjusted gross income for 2014?
a. $4,250.
b. $10,250.
c. $13,250.
d. $14,250.
e. None of the above.
Answer: D. $14,250 ($7,000 wages + $4,000 room and board + $3,000 dividends + $250 prize)