Hal Gore won a $1 million prize for special contributions to environmental research.This prize is awarded for public achievement, and Hal directed the awardingorganization to transfer $400,000 of the award to the Environmental Protection Agency. How much of the prize should Hal include in his gross income?

Question

Quizplus · Accepted Answer

Hal Gore should include $600,000 in his gross income since he directed $400,000 to be transferred to the Environmental Protection Agency. The remaining $600,000 is his personal income from the prize.

Hal Gore Won a $1 Million Prize for Special Contributions