Hal Gore Won a $1 Million Prize for Special Contributions

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

Correct Answer:

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