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24 October, 10:14

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?

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  1. 24 October, 13:24
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    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
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