For each of the following independent situations, indicate the amount the taxpayer must include in gross income:
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 tax-exempt entity, and Ellen plans to use the funds to pay her college education.
f. Gene won $400 in the office March Madness pool.
