ACCT 401

For each of the following independent situations, indicate the amount the taxpayer must include in gross income: (Leave no answer blank. Enter zero if applicable.)

a.Phil won $790 in the scratch-off state lottery. There is no state income tax.

b.Ted won a compact car worth $18,700 in a TV game show. Ted plans to sell the car next year.

c.Al Bore won the Nobel Peace Prize of $585,000 this year. Rather than take the prize, Al designated that the entire award should go to Weatherhead Charity, a tax-exempt organization.

d.Jerry was awarded $5,500 from his employer, Acme Toons, when he was selected most handsome employee for Valentines Day this year.

e.Ellen won a $1,950 cash prize in a school essay contest. The school is a tax-exempt entity, and Ellen plans to use the funds for her college education.

f.Gene won $760 in the office March Madness pool.