Hal Gore Won a $1 Million Prize for Special Contributions

question 87

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 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)$1,000,000
• D)None of the above because all prizes are excludible
• E)None of the above because prizes from charities are excludible

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Definitions:

Convenience Stores

Small retail outlets that offer a limited range of everyday items and are usually open for extended hours.

Online Retailing

The act of selling products and services online, enabling consumers to make purchases regardless of their location or the time of day.

Automated Vending

The use of self-service machines that dispense products to consumers, operating without the need for human vendors.

Warehouse Club

A membership-based retail store offering a wide variety of merchandise, often in bulk and at discounted prices.