Hal Gore Won a $1

Hal Gore won a $1.45 million prize for special contributions to environmental research. This prize is awarded for public achievement, and Hal directed the awarding organization to transfer $505,000 of the award to the Environmental Protection Agency. How much of the prize should Hal include in his gross income?

A) $505,000
B) $945,000
C) $1,450,000
D) None of the choices are correct because all prizes are excludable.
E) None of the choices are correct because prizes from charities are excludable.

Correct Answer:

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