Multiple Choice
Ethan competed in the annual Austin Marathon this year and won a $25,000 prize for fastest wheelchair entrant.Ethan indicated that he would transfer the prize to the local hospital.How much of the prize should Ethan include in his gross income?
A) $25,000
B) $25,000 because all prizes are taxable
C) Zero because prizes transferred to charities are excludible
D) Zero because all prizes are excludible
E) Zero because prizes from charities are excludible
Correct Answer:
Verified
Correct Answer:
Verified
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