hal gore won a $1 million prize for special contributions to environmental research. this prize is awarded…

hal gore won a $1 million prize for special contributions to environmental research. this prize is awarded for public achievement, and hal directed the awarding organization to transfer $400,000 of the award to the environmental protection agency. how much of the prize should hal include in his gross income? multiple choice $400,000 $600,000 $1 million none of the choices because all prizes are excludable. none of the choices because prizes from charities are excludable.
Answer
Explanation:
Step1: Identify total prize amount
The total prize amount is $1,000,000.
Step2: Identify amount donated
The amount directed to be transferred to the Environmental Protection Agency is $400,000.
Step3: Calculate gross - income amount
Gross income is the remaining amount after donation. So, $1000000 - 400000=600000$.
Answer:
$600,000$