40.Frank Fox won $10,000 in a state lottery. He also lost $3,000 at the horse races. On his income tax return he should report:

a.$10,000 gross income

b.$7,000 gross income

c.$10,000 gross income and $3,000 deduction for adjusted gross income

d.$10,000 gross income and $3,000 itemized deduction

e.None of these