This year Ed celebrated his 25^th year as an employee of Designer Jeans Company. In recognition of his long and loyal service, the company awarded Ed a gold watch worth $298 and a $2,420 cash bonus. What amount must Ed include in his gross income?

Multiple Choice

• Zero if Ed offers to contribute his watch and bonus to a qualified charity.
• $2,718.
• Zero - all employee awards are excluded from gross income.
• $2,420.
• $298.