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. $1,000,000
B. $400,000
C. $600,000
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


Answer: C

Business

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