Marie Had a Good Year

Marie had a good year. She received the following prizes and awards: - an iPad from The Oprah Show with a fair market value of $500
- lottery winnings of $1,000 received in cash
- a plaque worth $25 plus $100 of Godiva chocolate in recognition for 100 days on the job without an accident
- a $10,000 cash prize from American Idol
How much of her prizes and awards should Marie report on her tax return?

A) None, they are all excluded from income
B) $11,000; only cash prizes and awards are included
C) $11,500; the award from her job is excluded
D) $11,700; the plaque may be excluded
E) $11,725; everything is included at the highest amount