Jane, one of your clients, won $1,000,000 from the Kentucky lottery in March of this year. Jane will receive $40,000 per year for twenty-five year, beginning in the current year. In addition, in the current year, Jane spent $1,200 on purchases of lottery tickets. Jane wants to know how much she will have to include in gross income this year, and whether she can deduct any of her $1,200 expenses. What do you tell her? a. $1,000,000 and her expenses are not deductible. b. $1,000,000 and her expenses are deductible as miscellaneous itemized deductions. c. $40,000 and her expenses are not deductible. d. $40,000 and her expenses are deductible as miscellaneous itemized deductions.