What recessive disorder results in non-normal shaped blood cells that clog up blood vessels and cause pain, increased susceptibility to disease, and early death?
QuestionI have a 100 question tutorial in PSY 501 Developmental Psychology Multiple Choice Questions (Enter your answers on the enclosed answer sheet) 1. Who did developmental researchers focus on studying because they assumed that the processes of development were universal? a. Mexicans b. Europeans c. Canadians d. Americans 2. What is the current total fertility rate (TFR) worldwide? a. 1.4 b. 2.8 c. 4.2 d. 5.6 3. What is probably the oldest known conception of the life course, written about 3,000 years ago? a. the Dharmashastras b. the Bible c. the Koran d. the Talmud 4. What is Freud’s theory of human development? a. bio-sexual theory b. psychosexual theory c. sexual stage theory d. libido-drive theory 5. According to the text, what is a researcher’s idea about one possible answer to the question of interest? a. a scientific idea b. a hypothesis c. a proof d. a law 6. When participants are provided with specific responses to choose from on a questionnaire, what type of format is being used? a. open-ended question format b. closed-question format c. stream of consciousness format d. multiple choice format 7. What recessive disorder results in non-normal shaped blood cells that clog up blood vessels and cause pain, increased susceptibility to disease, and early death? a. Tay-Sachs b. trisomy-21 c. sickle-cell anemia d. malaria 8. A person with an XY pairing of chromosomes is a , whereas a person with an XX pairing of chromosomes is a . a. male; female b. female; male c. homogenetic inheritance; polygenetic inheritance d. polygenetic inheritance; homogenetic inheritance 9. Who are generally carriers of X-linked disorders? a. females b. males c. individuals who have been exposed to teratogens d. individuals with a trisomy 10. The structure that will form the structures that will provide protection and nourishment for the newly formed organism is the . a. umbilical cord b. placenta c. embryonic disk d. trophoblast 11. By the end of the third week the neural tube begins to form. This structure will eventually become . a. the skull and torso b. legs and arms c. the spinal cord and brain d. lungs and the digestive system 12. Children born with chromosomal problems are almost always born to parents with . a. the very same chromosomal problem b. similar genetic disorders c. above average intelligence d. no genetic or chromosomal problems 13. According to the text, oxytocin is released from the . a. fetus’s liver b. mother’s uterus c. fetus’s placenta d. mother’s pituitary gland 14. During what stage is the umbilical cord usually cut and tied? a. crowning b. active labor c. transitional labor d. The third stage of labor 15. Compared to other animals, the birth process for human beings is complicated by the . a. size of the infant’s head b. infant’s muscle to fat ratio c. amount of amniotic fluid expelled d. mother’s expectation of the birthing process 16. What are the “soft spots” on a neonate called? a. sutures b. cranium areas c. fontanels d. soft spots 17. How long does it take before the neonate has regained all of the weight that he or she lost right after birth? a. 2 weeks b. 3 weeks c. 4 weeks d. 5 weeks 18. For American infants, what percent are born with an Apgar score of 7 to 10? a. 52% b. 64% c. 76% d. 98% 19. One way that neonates’ sleep is distinctive is that they spend a high proportion of their sleep in . a. alpha stage sleep b. a coma-like sleep c. a position that is face down d. rapid eye movement (REM) sleep 20. In cultures where babies are held or carried around much of the day . a. prolonged episodes of crying are common b. prolonged episodes of crying are rare c. they cry because infants need time alone d. they cry because they sense that their mothers are frustrated with them 21. Growth and development proceed from the middle of the body outward, which is known as the . a. head first, body second principle b. cephalocaudal principle c. proximodistal principle d. top-down principle 22. As described in the text, which of the following are appropriate methods to soothe an infant who is teething? a. the use of a teething ring, a cold drink, or topical pain relievers b. the use of pediatric oral dentures c. the use of children’s acetaminophen or ibuprofen d. the use of a cotton ball that is soaked in whiskey 23. is a tiny gap between neurons. a. A neurotransmitter b. The synapse c. A dendrite d. Myelin 24. When neuronal connections that are used become stronger and faster and the neuronal connections that are not used wither away, what is happening? a. brain death b. axonal withering c. synaptic pruning d. intellectual development 25. What is the leading cause of death for infants between birth and one year of age in developed countries? a. accidents b. SIDS c. AIDS d. genetic disorders 26. An infant between the ages of birth and 2 would be in which of Piaget’s cognitive stages? a. sensorimotor b. preoperational c. concrete operations d. formal operations 27. Secondary circular reactions involve activity in relation to the . a. infant’s own body b. parent c. external world d. siblings 28. What approach that attempts to understand cognitive development views development as continuous? a. information-processing approach b. behavioral theory c. Piaget’s cognitive developmental theory d. Typological Advancement theory 29. During toddlerhood children do not need as much of this to maintain a constant body temperature? a. warm clothes b. mother’s body c. body hair d. body fat 30. Which of the following is a protein deficiency that primarily affects toddlers in developing nations and leads to a range of symptoms such as lethargy, irritability, and thinning of hair? a. kwashiorkor b. micronutrients c. eczema d. tuberculosis 31. How many neurons does the brain contain when the toddler is 2 years old? a. twice as many as at birth b. four times as many as at birth c. half as many as at birth d. the same total number of neurons 32. Two possible reasons why toddlers have an increased frequency of waking at night are . a. teething and an increased sense of self b. increased physiological response and increased hormone production c. nocturnal enuresis and increased fidgeting d. decreased autonomic nervous system and increased parasympathetic response 33. Piaget’s fifth sensorimotor stage is . a. simple reflexes b. secondary circular reactions c. tertiary circular reactions d. mental representations 34. is the basis of human language. a. Deferred imitation b. Mental representation c. Unconscious symbolism d. Object permanence 35. Which of the following are secondary emotions? a. sadness, disgust, and joy b. anger, fear, and happiness c. shame, guilt, and embarrassment d. surprise, sadness, and anger 36. When do children begin to use personal pronouns for the first time (e.g., “I,” “me,” etc.) and refer to themselves by their own names? a. 9 months b. 12 months c. 18 months d. 24 months 37. What percentage of North American children have at least one dental cavity by age five years? a. 5% b. 10% c. 20% d. 40% 38. What is the brain system that is involved in attention? a. cerebellum b. hippocampus c. reticular formation d. corpus callosum 39. Which of the following elements is responsible for the growth of strong bones and teeth? a. calcium b. zinc c. fluoride d. potassium 40. What is the name of the Piagetian substage in which children are first capable of representational thought and of using symbols to represent the world? a. formal operations b. representational operations c. systematic thought d. symbolic function 41. What is one of the criticisms that other cognitive theorists and researchers have regarding Piaget’s theory of cognitive development during the preoperational stage? They believe that development is actually much more . a. vacillating and not predictable b. stable and rarely changed c. stage-like and less continuous d. continuous and much less stage-like 42. Children from what group in the United States especially benefited cognitively from preschool? a. families who had parents who were professionals b. affluent families c. Midwestern families d. low-income families 43. What is defined as the practices that parents exhibit in relation to their children and their beliefs about these practices? a. child–parent practices b. parenting learning strategies c. parenting styles d. discipline strategies 44. In what types of cultures do parents expect that their authority will be obeyed without question and without requiring an explanation? a. Western cultures b. traditional cultures c. nontraditional cultures d. native cultures 45. In middle childhood physical growth continues at a slow but steady pace. How many inches per year does the average child gain in height during this time? a. 2 to 3 inches b. 5 to 6 inches c. 8 to 9 inches d. 11 to 12 inches 46. Internationally, children aged 6 to 10 years are considered to be overweight if . a. they eat more than 2,000 calories a day b. fail to exercise for more than 30 minutes per day c. have a BMI that exceeds 18 d. have 20% or more body fat 47. In the U.S., rates of overweight and obesity are higher in . a. ethnic minority groups b. high income families c. first-generation families d. White American families 48. What Piagetian concept describes the ability of children to understand that the quantity of an object has not changed although its shape has? a. concept shifting b. critical thinking c. reversibility d. decentering 49. What is the disorder referred to when individuals have difficulties in maintaining attention? a. attention persistence disorder b. attention deficit disorder c. attention control disorder d. attention-deficit/hyperactivity disorder 50. What are the negative side effects of using medication for the treatment of ADHD? a. slower physical growth and higher risk of depression b. lethargy and a larger appetite that increases the likelihood of obesity c. decreased intelligence and delayed cognitive development d. loss of bone density and delayed motor coordination 51. Ambivalence is . a. two ends of one extreme b. experiencing two contradictory emotions at once c. an unexpected and undesirable emotional state d. a happy but unexpected surprise 52. What is the term that is used to describe a person’s perception and evaluation of him- or herself? a. self-concept b. self-esteem c. self-evidence d. self-comparison 53. By the mid-teens, testosterone production in males is how many times greater than it was before puberty? a. 8 b. 12 c. 16 d. 20 54. Considerable thickening of synaptic connections occurs around the time puberty begins during a process neuroscientists call . a. overproduction b. pruning c. myelination d. synaptic expansion 55. What is the last structure of the brain to complete its growth process? a. cortex b. cerebellum c. hypothalamus d. frontal lobes 56. As described by Piaget, the child who solves the pendulum task and can explain their rationale is closer to the stage of cognitive development. a. sensorimotor b. preoperational c. concrete operations d. formal operations 57. People who demonstrate the capacity for formal operations tend to use it selectively, for . a. problems and situations that involve social cognitive reasoning and social cognitive problem-solving b. problems and situations that involve low to moderate creativity and ingenuity c. problems and situations in which they have the most experience and knowledge d. problems and situations that involve personal consequences 58. Which of the following are the two keys to cognition in the information processing approach? a. attention and memory b. neural growth and synaptic connections c. parietal and occipital lobes d. visual images and the management of cognitive load 59. Comparing preadolescent 5th graders to adolescent 8th graders, Larson and Richards (1994) found that the percentage of time participants experienced as “very happy” . a. increased by 60% b. increased by 20% c. decreased by 30% d. decreased by 50% 60. David Gilmore (1990) concluded that in most cultures an adolescent boy must demonstrate three capacities before he can be considered a man. What are the three capacities? a. perform, promote, and prosper b. proud, perfect, and polite c. proficient, pure, and political d. provide, protect, and procreate 61. What are five characteristics that distinguish emerging adulthood from other age periods? a. It is the age of identity explorations, instability, being self-focused, feeling in- between, and possibilities. b. It is the age of stability, being other-focused, identity diffusion, feeling in- between, and stagnation. c. It is the age of identity moratorium, stability, feeling marginalized, being self- focused, and developing a global worldview. d. It is the age of instability, being other-focused, identity foreclosure, feeling marginalized, and possibilities. 62. The time period of emerging adulthood is more likely to be a part of , and absent in . a. developed countries; undeveloped countries b. undeveloped countries; developed countries c. collective cultures; individualistic cultures d. individualistic cultures; collective cultures 63. Cardiac output peaks in which of the following time periods of life? a. childhood b. adolescence c. emerging adulthood d. middle adulthood 64. Which of the following best describes pragmatism? a. using language and mental images as a basis for problem-solving on tangible concrete items b. coordinating sensory modalities with motor skills as a basis for an individual’s perception of his or her world c. applying rigid logical thought to solve real-life situations that contain complexities and inconsistencies d. adapting logical thought to solve practical real-life situations that contain complexities and inconsistencies 65. is often seeing situations and issues in polarized terms—an act is either right or wrong, with no in-between; a statement is either true or false, regardless of the nuances or the situation to which it is being applied. a. Dualistic thinking b. Situational judgments c. Relative-hypothesis testing d. Concrete thought 66. What type of education or training program takes place beyond secondary school? a. primary education b. tertiary education c. quaternary education d. technical education 67. A(n) occurs when people believe others possess certain characteristics simply as a result of being a member of a particular group. a. stereotype b. discrimination c. negative behaviors d. unconscious association 68. The collapse of communism began in Eastern Europe in 1989 and was initiated by . a. individuals in their late teens b. individuals in emerging adulthood c. individuals in middle adulthood d. individuals in late adulthood 69. What do emerging adults in Korea and China view as the most important criterion that signals adulthood? a. completing military service b. supporting a family financially c. being able to support their parents financially d. emotional self-control 70. In traditional cultures the collectivistic value of is more highly prized than the individualistic value of . a. self-promotion; assertiveness b. assertiveness; self-promotion c. independence; interdependence d. interdependence; independence 71. What do about 30% to 50% of Western and Asian women do to their hair during young adulthood? a. cut it very short for convenience b. color or dye it c. replace it with wigs and hair pieces d. nothing 72. Although the body of research on IQ showing a relation between IQ and adult career success is large, nearly all of it is concentrated . a. in developed countries b. in non-Western countries c. solely in the United States d. exclusively outside of the United States 73. For Piaget, the culmination of cognitive maturation is the attainment of formal operations around age . a. 11 b. 18 c. 20 d. 25 74. What type of love involves feelings of closeness and emotional attachment? a. intimacy b. commitment c. passion d. desire 75. What type of love characterizes most friendships and involves intimacy without passion or commitment? a. liking b. infatuation c. empty love d. romantic love 76. What type of love integrates passion, intimacy, and commitment? This type of love represents the ideal for many people. a. romantic love b. companionate love c. fatuous love d. consummate love 77. During middle adulthood, which of the following is more likely to experience hair thinning and baldness? a. a male of European descent b. a female of European descent c. a male of Asian descent d. a female of Asian descent 78. What are the tiny hairs in the inner ear known as? a. tympanic hairs b. incus, stapes, and malleus c. cilia d. hearing hairs 79. At what age does menopause usually occur? a. between 20 and 30 years of age b. between 30 and 40 years of age c. between 40 and 50 years of age d. between 50 and 60 years of age 80. Who was the theorist who first described fluid and crystallized intelligence? a. Raymond Cattell b. Jean Piaget c. Alfred Binet d. Robert Sternberg 81. represents the accumulation of a person’s culturally based knowledge, language, and understanding of social conventions. a. G-intelligence b. Crystallized intelligence c. Fluid intelligence d. Multiple intelligence 82. The results of the Seattle Longitudinal Study indicate that is a period when many aspects of intelligence reach their peak. a. early adulthood b. young adulthood c. midlife d. late life 83. At what period in the lifespan is contentment with the self the highest? a. emerging adulthood b. young adulthood c. middle adulthood d. late adulthood 84. A cross-sectional study of American adults from their late teens to their seventies found similar enhancements in self-development in middle adulthood. Which of the following are qualities of self that increased with age? a. self compliance, self-mastery, and the empathetic self b. self acceptance, economy, and environmental mastery c. the self as man, the self as a woman, and the self as androgynous d. the I-self, the me-self, and the we-self 85. In Asian cultures, the tradition of filial piety is . a. obedience and respect to parents, no matter how old they are b. honor and trust to everyone in the family c. loyalty to the laws and codes of society d. commitment to one’s family and their village 86. Countries that have a birth rate that is below 2.1 children per woman . a. will see a decline in their total population b. will see an increase in the total population c. will see a leveling off in their total population d. are unable to predict population values 87. What is the ratio of the number of person aged 65 years or older to the number of person aged 20 to 64 years in Japan? a. 25% b. 35% c. 45% d. 55% 88. The is a classic psychology experiment in which people are asked to indicate the color of a word flashing on a screen, but the word itself presents contrary information. a. Stroop test b. Myers-Briggs c. Minnesota Multiphasic Personality Inventory d. Q-sort 89. Which of the following best describes working memory? a. memory for information currently the focus of your attention b. memories that are stored in the cerebral cortex c. memories that are below one’s level of awareness d. memories for simplistic motor skills that are stored in the cerebellum 90. The cerebellum is , whereas the frontal lobes are . a. responsible for planning and judgment; involved in balance and coordination b. involved in balance and coordination; responsible for planning and judgment c. responsible for auditory and visual processing; involved in sensory and motor skills d. involved in sensory and motor skills; responsible for auditory and visual processing 91. According to Erikson, ego involves looking back on one’s life and accepting the outcome of it; whereas, ego entails regrets and bitterness about the course of one’s life, and a conclusion that it has not gone well and now cannot be changed. a. inferiority; mistrust b. mistrust; inferiority c. integrity; despair d. despair; integrity 92. According to Carstensen, at late adulthood, the goals that people have for their social relationships are . a. knowledge-based b. emotions-based c. task-based d. conflict-based 93. Until the past century, was the life stage with the highest mortality rates. a. the prenatal period b. infancy c. toddlerhood d. early childhood 94. Which of the following dramatically reduced death rates due to infectious diseases during the 20th century? a. access to health care, health insurance, and better trained physicians b. economic wealth, improvements in medicine, and the automobile c. vaccinations, antibiotics, and better sanitation d. better nutritional foods, vaccinations, and antibiotics 95. In developed countries deaths under age 5 years are rare and occur most often due to . a. SIDS b. infectious diseases c. accidents d. abuse 96. In developed countries most people die in . a. a hospital b. home c. hospice care d. a nursing home 97. Where does hospice care commonly occur? a. in a hospital b. in a cancer center c. at home d. in a nursing home 98. Despite the evidence of the advantages of the hospice approach, currently, only about of deaths in the United States involve a hospice program. a. 10% b. 20% c. 30% d. 40% 99. Even in early childhood, most children understand that death is ; however, for most children it is not until middle childhood that they realize that death is . a. discussable; avoidable b. avoidable; discussable c. inevitable; permanent d. permanent; inevitable 100. Anxiety about one’s death is highest at . a. emerging adulthood b. young adulthood c. middle adulthood d. late . Click here to Order this paper at http://essaywritersgeek.com. A Professional Essay Writing Service Uncategorized CHAPTER 5 GROSS INCOME: EXCLUSIONS April 13, 2015 Published by: admin Click here to Order this paper at http://essaywritersgeek.com. A Professional Essay Writing Service Question 1. The taxpayer incorrectly took a $5,000 deduction (e.g., incorrectly calculated depreciation) in 2014 and as a result his taxable income was reduced by $5,000. The taxpayer discovered his error in2015. The taxpayer must add $5,000 to his 2015 gross income in accordance with the tax benefit rule to correct for the 2014 error. a. True b. False 2. Mia participated in a qualified state tuition program for the benefit of her son Michael. She contributed $15,000. When Michael entered college, the balance in the fund satisfied the tuition charge of $20,000. When the funds were withdrawn to pay the college tuition for Michael, neither Mia nor Michael must include $5,000 ($20,000 – $15,000) in gross income. a. True b. False 3. The earnings from a qualified state tuition program account are deferred from taxation until they are used for qualified higher education expenses. At that time, the amount taken from the fund must be included in the gross income of the person who contributed to the account. a. True b. False 4. Benny loaned $100,000 to his controlled corporation. When it became apparent the corporation would not be able to repay the loan in the near future, Benny canceled the debt. The corporation should treat the cancellation as a nontaxable contribution to capital. a. True b. False 5. Zork Corporation was very profitable and had accumulated excess cash. The company decided to repurchase some of its bonds that had been issued for $1,000,000. Because of an increase in market interest rates, Zork was able to retire the bonds for $900,000. The company is not required to recognize $100,000 of income from the discharge of its indebtedness but must reduce the basis in its assets. a. True b. False 6. Amber Machinery Company purchased a building from Ted for $250,000 cash and a mortgage of $750,000. One year after the transaction, the mortgage had been reduced to $725,000 by principal payments by Amber, but it was apparent that Amber would notbe able to continue to make the monthly payments on the mortgage. Ted reduced the amount owed by Amber to $600,000. This reduced the monthly payments to a level that Amber could pay. Amber must recognize $125,000 income from the reduction in the debt by Ted. a. True b. False 7. The taxpayer’s marginal tax bracket is 25%. Which would the taxpayer prefer? a. $1.00 taxable income rather than $1.25 tax-exempt income. b. $1.00 taxable income rather than $.75 tax-exempt income. c. $1.25 taxable income rather than $1.00 tax-exempt income. d. $1.40 taxable income rather than $1.00 tax-exempt income. e. None of the above. 8. Cash received by an employee from an employer: a. Is notincluded in gross income if it was not earned. b. Is nottaxable unless the payor is legally obligated to make the payment. c. Must always be included in gross income. d. May be included in gross income although the payor is notlegally obligated to make the payment. e. None of the above. 9. Sharon had some insider information about a corporate takeover. She unintentionally informed a friend, who immediately bought the stock in the target corporation. The takeover occurred and the friend made a substantial profit from buying and selling the stock. The friend told Sharon about his stock dealings, and gave her a pearl necklace because she “made it all possible.” The necklace was worth $10,000, but she already owned more jewelry than she desired. a. The necklace is a nontaxable gift received by Sharon because the friend was not legally required to make the gift. b. The value of the necklace is not included in Sharon’s gross income unless she sells it. c. The value of the necklace is not included in Sharon’s gross income because passing the information was an illegal act and the SEC can confiscate the necklace. d. The value of the necklace must be included in Sharon’s gross income for the tax year it was received by her. e. None of the above. 10.Carin, a widow, elected to receive the proceeds of a $150,000 life insurance policy on the life of her deceased husband in 10 installments of $17,500 each. Her husband had paid premiums of $60,000 on the policy. In the first year, Carin collected $17,500 from the insurance company. She must include in gross income: a. $0. b. $2,500. c. $10,000. d. $25,000. e. None of the above. 11.Iris collected $150,000 on her deceased husband’s life insurance policy. The policy was purchased by the husband’s employer under a group policy. Iris’s husband had included $5,000 in gross income from the group term life insurance premiums during the years he worked for the employer. She elected to collect the policy in 10 equal annual payments of $18,000 each. a. None of the payments must be included in Iris’s gross income. b. The amount she receives in the first year is a nontaxable return of capital. c. For each $18,000 payment that Iris receives, she can exclude $500 ($5,000/$180,000 × $18,000) from gross income. d. For each $18,000 payment that Iris receives, she can exclude $15,000 ($150,000/$180,000 × $18,000) from gross income. e. None of the above. 12.Turquoise Company purchased a life insurance policy on the company’s chief executive officer, Joe. After the company had paid $400,000 in premiums, Joe died and the company collected the $1.5 million face amount of the policy. The company also purchased group term life insurance on all its employees. Joe had included $16,000 in gross income for the group term life insurance premiums. Joe’s widow, Rebecca, received the $100,000 proceeds from the group term life insurance policy. a. Rebecca can exclude the life insurance proceeds of $100,000, but Turquoise Company must include $1,100,000 ($1,500,000 – $400,000) in gross income. b. Turquoise Company and Rebecca can exclude the life insurance proceeds of $1,500,000 and $100,000, respectively, from gross income. c. Turquoise Company can exclude $1,100,000 ($1,500,000 – $400,000) from gross income, but Rebecca must include $84,000 in gross income. d. Turquoise Company must include $1,100,000 ($1,500,000 – $400,000) in gross income and Rebecca must include $100,000 in gross income. e. None of the above. 13.Swan Finance Company, an accrual method taxpayer, requires all of its customers to carry credit life insurance. If a customer dies, the company receives from the insurance company the balance due on the customer’s loan. Ali, a customer, died owing Swan $1,500. The balance due included $200 accrued interest that Swan has included in income. When Swan collects $1,500 from the insurance company, Swan: a. Must recognize $1,500 income from the life insurance proceeds. b. Must recognize $1,300 income from the life insurance proceeds. c. Does not recognize income because life insurance proceeds are tax-exempt. d. Does not recognize income from the life insurance because the entire amount is a recovery of capital. e. None of the above. 14.Ben was diagnosed with a terminal illness. His physician estimated that Ben would live no more than 18 months. After he received the doctor’s diagnosis, Ben cashed in his life insurance policy and used the proceeds to take a trip to see relatives and friends before he died. Ben had paid $12,000 in premiums on the policy, and he collected $50,000, the cash surrender value of the policy. Henry enjoys excellent health, but he cashed in his life insurance policy to purchase a new home. He had paid premiums of $12,000 and collected $50,000 from the insurance company. a. Neither Ben nor Henry is required to recognize gross income. b. Both Ben and Henry must recognize $38,000 ($50,000 – $12,000) of gross income. c. Henry must recognize $38,000 ($50,000 – $12,000) of gross income, but Ben does not recognize any gross income. d. Ben must recognize $38,000 ($50,000 – $12,000) of gross income, but Henry does not recognize any gross income. e. None of the above. 15.Albert had a terminal illness which required almost constant nursing care for the remaining two years of his estimated life, according to his doctor. Albert had a life insurance policy with a face amount of $100,000. Albert had paid $25,000 of premiums on the policy. The insurance company has offered to pay him $80,000 to cancel the policy, although its cash surrender value was only $55,000. Albert accepted the $80,000. Albert used $15,000 to pay his medical expenses. Albert made a miraculous recovery and lived another 20 years. As a result of cashing in the policy: a. Albert must recognize $55,000 of gross income, but he has $15,000 of deductible medical expenses. b. Albert must recognize $65,000 ($80,000 – $15,000) of gross income. c. Albert must recognize $40,000 ($80,000 – $25,000 – $15,000) of gross income. d. Albert is notrequired to recognize any gross income because of his terminal illness. e. None of the above. 16.A scholarship recipient at State University may exclude from gross income the scholarship proceeds used to pay for: a. Only tuition. b. Tuition, books, and supplies. c. Tuition, books, supplies, meals, and lodging. d. Meals and lodging. e. None of the above. 17.Ron, age 19, is a full-time graduate student at City University. During 2014, he received the following payments: Cash award for being the outstanding resident adviser $ 1,500 Resident adviser housing 2,500 State scholarship for ten months (tuition and books) 6,000 State scholarship (meals allowance) 2,400 Loan from college financial aid office 3,000 Cash support from parents 2,000 $17,400 Ron served as a resident advisor in a dormitory and, therefore, the university waived the $2,500 charge for the room he occupied. What is Ron’s adjusted gross income for 2014? a. $1,500. b. $3,900. c. $9,000. d. $15,400. e. None of the above. 18.Barney is a full-time graduate student at State University. He serves as a teaching assistant for which he is paid $700 per month for 9 months and his $5,000 tuition is waived. The university waives tuition for all of its employees. In addition, he receives a $1,500 research grant to pursue his own research and studies. Barney’s gross income from the above is: a. $0. b. $6,300. c. $11,300. d. $12,800. ANSWER: b RATIONALE: The monthly stipend of $700 (for 9 months = $6,300) for research is taxable compensation. The research grant of $1,500 is to assist him in his education and is not in exchange for services; therefore, the grant is a nontaxable scholarship. The tuition waiver is excluded as a qualified tuition reduction program. 19.Jena is a full-time undergraduate student at State University and is claimed by her parents as a dependent. Her only source of income is a $10,000 athletic scholarship ($1,000 for books, $5,500 tuition, $500 student activity fee, and $3,000 room and