Gross income from working as a resident advisor

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Tommy, a senior at State College, receives free room and board as full compensation for working as a resident advisor at the university dormitory. The regular housing contract is $1,800 a year in total, $1,000 for lodging and $800 for meals in the dormitory. Tommy had the option of receiving the meals or $800 in cash. Tommy accepted the meals. What is Tommy's gross income from working as a resident advisor?

a. $0, the entire value of the contract is excluded from gross income.

b. $800, only the meal contract must be included in gross income.

c. $1,000, only the lodging contract must be included in gross income.

d. $1,800, the entire value of the contract is compensation.

e. None of the above.

Reference no: EM13145326

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