Hal Gore Won a $1 Million Prize for Special Contributions

question 119

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 million
• D) None of these because all prizes are excludible
• E) None of these because prizes from charities are excludible

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Definitions:

Stylomandibular Ligament

A fibrous band of the cervical fascia that extends from the styloid process of the temporal bone to the angle of the mandible, acting in the limitation of excessive jaw opening.

Zygomatic Arch

The bone structure that forms the prominence of the cheek, extending from the zygomatic process of the temporal bone to the zygomatic bone.

Temporomandibular Joint

A hinge joint that connects the lower jaw (mandible) to the temporal bone of the skull, facilitating mouth movement.

Sagittal Suture

The fibrous joint between the two parietal bones of the skull, running from the front to the back of the head.