There are many instances where people receive, find, or win items of value. For example, imagine finding a $100 bill, or winning a prize on a television game show like the ceramic dog on the old Wheel of Fortune. What about gambling winnings? We all question whether or not these items are taxable since they are not actual wages earned.

Required: Do you perceive an ethical dilemma? Should we report these items as taxable income? If so, is there some type of limit or should we report any and all money, gifts, winnings, etc. as taxable income? In cases where we win gifts like the ceramic dog, there is no money involved, so how would we even place a value on that item?