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Ron, age 19, is a full-time graduate student at City University. During 2010, he received the following payments:
State scholarship for ten months (tuition and books) - $4,000Loan from college financial aid office - $2,000Cash support from parents - $2,500Cash award for being the outstanding resident adviser - $1,000
Total - $9,500
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 2010?
a) $1,000b) $3,500c) $5,000d) $12,000e) None of the above
This year Larry received the first payment from an annuity that promises to pay him $3,000 per month for the rest of his life. The IRS tables indicate that given Larry's age, he should expect to receive 310 monthly payments.
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