a.Phil won $635 in the scratch-off state lottery. There is no state income tax.All $635 is economic income realized this year and is, therefore, included in gross income.b.Ted won a compact car worth $19,200 in a TV game show. Ted plans to sellthe car next year.The value of the car, $19,200, is economic income realized this year and is, therefore, included ingross income.c.Al Bore won the Nobel Peace Prize of $695,000 this year. Rather than takethe prize, Al designated that the entire award should go to WeatherheadCharity, a tax-exempt organization.The entire award is excluded and therefore tax exempt. The award is excluded because it was forscientific, literary, or charitable achievement, and the taxpayer immediately transferred the award toa qualified charity.d.Jerry was awarded $3,850 from his employer, Acme Toons, when he wasselected most handsome employee for Valentine’s Day this year.All $3,850 is economic income realized this year and is, therefore, included in gross income.
