Federal Tax Research 10th Edition by Roby Sawyers,William Raabe,Gerald Whittenburg,Steven Gill

Exercise 40

Georgia won the Massachusetts lottery, which means that she will receive $28,000 per year for the next 30 years. Georgia purchased the lucky ticket in March, and she was selected the winner in June. Georgia regularly spent $100 per month on lottery tickets, one-third for Massachusetts tickets and two-thirds for Vermont tickets.
a. What is Georgia's gross income from this prize
b. Is there any corresponding deduction