(1) ABC is a regular corporation i.e., not an S corporation. On your 2019 Form 1040, you will report ___ of gross income from ABC. Why is that the correct amount?

(2) Your favorite hobby is fishing. Last week you entered a fishing contest and Wow! caught the biggest fish and won the $25,000 grand prize.

But youre also a partner in a Big 4 accounting firm and make almost $500,000 a year there, so another $25,000? . . . you dont really need it. You tell the contest sponsor Thanks but no thanks and ask that the money be donated directly to the American Red Cross instead. That is exactly what happens.

Do you need to include the $25,000 in your 2020 gross income? Why or why not?

plzzz ans asap....