A client received a $10,000 scholarship to cover tuition expenses; however, $2,500 of the amount...

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Accounting

A client received a $10,000 scholarship to cover tuition expenses; however, $2,500 of the amount of the scholarship was provided based on working 30 hours as a teaching assistant. How much of this income is taxable?
The entire $10,000
None of the amount is taxable because it was all paid in the form of a scholarship grant
Only the scholarship amount not based on the teaching assistantship wages ($7,500)
Only the amount based on earnings from the teaching assistantship ($2,500)

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