LO.8 For each of the following, determine the amount that should be included in gross income:

a. Don was selected as the most valuable player in the World Series. In recognition of this, he was awarded a sports car worth $75,000 plus $100,000 in cash.

b. Wanda won the Mrs. America beauty contest. She received various prizes valued at

$200,000. None of the $200,000 was for a scholarship or travel expenses.

c. Jacob was awarded the Nobel Prize in Medicine. He directed the Nobel committee to pay the $1.4 million prize to City University, his alma mater.

CRI T I CAL THINKING DECISION MAKING