What is the tax treatment for a taxpayer receiving a gold watch valued at $$350$ in recognition of his $25$ th year of

working for the same company?

The value of the watch is included in gross income.

The value of the watch is excluded from gross income.

The value of the watch is only excluded from gross income if the taxpayer donates it to a charita$-$

ble organization.

One$-$half of the value of the watch must be included in gross income.