Problem 2-12 Prizes and Awards (LO 2.6) How much of each of the following is taxable? If the amount is not taxable, enter "0". a. Cheline, an actress, received a $6,400 gift bag for attending the Academy Awards Ceremony during 2020. 6,400 Feedback Check My Work Gross income is the starting point for calculating a taxpayer's tax liability. The definition of gross income as "all income from whatever source derived" is perhaps the most well-known definition in the tax law. Under this definition, unless there is an exception in the law, the U.S. Government considers all income taxable. Refer to Table 2.2. Exclusions from Gross Income, in the textbook. b. Jon received a gold watch worth $660 for 25 years of service to his accounting firm (not a qualified award). 260 Feedback c. Kerry won $1,000,000 in her state lottery. Feedback d. Deborah is a professor who received $30,000 as an award for her scientific research from the university that employs her.