For each of the following independent situations, indicate the amount the taxpayer must include in gross income and explain your answer:

a) Phil won $500 in the scratch-off state lottery. There is no state income tax.

b) Ted won a compact car worth $17,000 in a TV game show. Ted plans to sell the car next year.

c) Al Bore won the Nobel Peace Prize of $500,000 this year. Rather than take the prize, Al designated that the entire award should go to Weatherhead Charity, a tax-exempt organization.

d) Jerry was awarded $2,500 from his employer, Acme Toons, when he was selected most handsome employee for Valentine’s Day this year.

e) Ellen won a $1,000 cash prize in a school essay contest. The school is a taxexempt entity, and Ellen plans to use the funds to pay her college education.

f ) Gene won $400 in the office March Madness pool.