Ron Won a $25,000 Award for His Research in Microbiology

question 105

True/False

Ron won a $25,000 award for his research in microbiology and he immediately transferred the prize to his brother who does similar research. The income is excluded from Ron's taxable income.

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Definitions:

Obligated

A condition or situation where one is legally or morally bound to perform a certain action or fulfill a duty.

Stop-Payment Order

a request made to a bank by an account holder not to pay a check that has been issued but not yet cashed.

Loss

A decrease in value, resources, or money typically as a result of a business transaction, investment, or unforeseen events.

Postdated

Pertaining to a check or other document that bears a date later than the actual date it was written, to be cashed or deposited at that later date.