Ms. Clara Crayola, a teacher, received a cash award of $5,000 from the Chamber of Commerce in recognition of her past accomplishments in the ﬁeld of education. She was chosen without action on her part and is not expected to perform any future services. fte $5,000 award is the same as any other prize and must be reported by Clara as income in 2012.

Question

Quizplus · Accepted Answer

Ms. Crayola may not assign this award to a charitable organization because it is not in the ﬁelds of science, charity, or the arts.

Ms Clara Crayola, a Teacher, Received a Cash Award of $5,000