Hal Gore won a $1 million prize for special contributions to environmental research.This prize is awarded for public achievement,and Hal directed the awarding organization 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 should include $600,000 of the prize in his gross income. The $400,000 that he directed to be transferred to the Environmental Protection Agency is a charitable contribution and is not included in his gross income. However, the remaining $600,000 is considered his personal prize winnings and should be included in his gross income.

Hal Gore Won a $1 Million Prize for Special Contributions