Requirement

For each of the following, indicate whether the amount is taxable:

a.

Peggy won $4,000 in the state lottery.

b.

Jane won a $500 prize for her entry in a poetry contest.

c.

Linda was awarded $2,000 when she was selected as "Teacher of the Year" by the local school district.

Transaction

Taxable?

a.

Peggy won $400 in the state lottery.

b.

Jane won a $500 prize for her entry in a poetry contest.

c.

Linda was awarded $2,000 when she was selected as "Teacher of the Year" by the local school district.