Hal Gore Won a $1 Million Prize for Special Contributions

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?

A) $400,000
B) $600,000
C) $1 million
D) None of the above because all prizes are excludible
E) None of the above because prizes from charities are excludible