6-54 Unrelated Party Transfers. In each of the following independent situations, deter. mine how much, if any, the taxpayer must include in gross income. a. Taxpayer has been very active as a volunteer hospital worker for many years. In the current year, the city named her as the Outstanding Volunteer of the Year. She later discovered that she was nominated for the award by two nurses at the hospital. The honor included a silver tray valued at $400. In addition, the two nurses collected $700 from hospital personnel and gave her a prepaid one-week vacation for two people. b. Taxpayer, an undergraduate degree candidate, was selected as one of five out- standing sophomore students in accounting by the Institute of Management Accountants. Selection was based on an application submitted by eligible stu- dents. The winner received $15,000. Although there was no stipulation of how the money was to be used, the award was given with the expectation that the money would be used for tuition, books, and fees in the student's junior and senior years. c. Taxpayer won the bowling league award for the highest total score over a five week period. Taxpayer received a trophy valued at $65 and $100 cash. d. Taxpayer purchased church raffle tickets in her eight-year-old son's name and gave the tickets to him. One of the tickets was drawn. The prize was a $600 color television. e. Taxpayer receives a $20,000 grant from the National Association of Chiefs of Police to conduct a research study on crowd control. The grant stipulates that the research period is for eight months and that $8,000 of it is for travel and temporary living costs. f. An accounting student accepted an internship with a CPA firm and is paid $3,000. The stated purpose of the internship is to provide students with a ba- sic understanding of how accounting education is applied. It is believed this understanding will help students in remaining course work and later job selec- tion. Although the faculty believes internships would benefit all students, only 40% of the accounting majors participate in the program