Question

Hal Gore won a $2.25 million prize for special contributions to environmental research. This prize is awarded for public achievement, and Hal directed the awarding organization to transfer $510,000 of the award to the Environmental Protection Agency. How much of the prize should Hal include in his gross income?

Answer 1

Answer: $1,740,000

Explanation:

Given that,

Hal gore won a prize = $2,250,000

Amount from the award transfer to Environmental Protection Agency = $510,000

Prize should Hal include in his gross income = Prize amount - Transfer amount

                                                                           = $2,250,000 -  $510,000

                                                                           = $1,740,000