Hal Gore Won a $1 Million Prize for Special Contributions

question 14

Multiple Choice

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?

• A) $1,000,000
• B) $400,000
• C) $600,000
• D) None of the choices are correct, because all prizes are excludible.
• E) None of the choices are correct, because prizes from charities are excludible.

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Definitions:

Achievement

Success or accomplishment reached through effort, skill, or courage.

Controlled Motivation

A type of motivation that is externally regulated, often through rewards and punishments, rather than stemming from inherent interest or enjoyment.

Controlled Motivation

A type of motivation generated by external pressures or obligations, rather than internal interest or enjoyment in the activity itself.

N-Ach

Abbreviation for "Need for Achievement," which is the drive to excel, achieve in relation to a set of standards, and strive to succeed.