Peyton was selected the most valuable player in the Super Bowl. In recognition of this, he was awarded an automobile with a value of $60,000. Peyton did not need the automobile, so he asked that the title be put in his parents' names. Peyton is required to include $ in gross income. b. Jacob was awarded the Nobel Peace Prize. When he was presented the check for $1,400,000, Jacob said, "I do not need the money. Give it to the United Nations to use toward the goal of world peace." Jacob is required to include $ of the prizes received in his gross income. c. Linda won the Craig County Fair beauty pageant. She received a $10,000 scholarship that paid her $6,000 for tuition and $4,000 for meals and housing for the academic year. Linda is required to include $ of the scholarship in her gross income.

Question

Dahlia Howell

Business

3 November, 21:07

Peyton was selected the most valuable player in the Super Bowl. In recognition of this, he was awarded an automobile with a value of $60,000. Peyton did not need the automobile, so he asked that the title be put in his parents' names. Peyton is required to include $ in gross income. b. Jacob was awarded the Nobel Peace Prize. When he was presented the check for $1,400,000, Jacob said, "I do not need the money. Give it to the United Nations to use toward the goal of world peace." Jacob is required to include $ of the prizes received in his gross income. c. Linda won the Craig County Fair beauty pageant. She received a $10,000 scholarship that paid her $6,000 for tuition and $4,000 for meals and housing for the academic year. Linda is required to include $ of the scholarship in her gross income.

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Answers (1)

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Erica Friedman · Answer 1

1. Python is required to include $60,000 in his gross income.

2. Jacob is not required to include the $1,400,00 in his gross income.

3. Linda is required to include $4,000 in her gross income.

Explanation:

Each of the questions is explained as follows:

1. Python

Being selected as the most valuable player in the Super Bowl is not a kind of achievement that is qualified to be excluded from gross income. Python's achievement would have qualified to be excluded from the gross income if he had donated it to a not for profit organization or qualified governmental agency, but he did not satisfy this condition.

Therefore, the total value of the automobile which $60,000 is required to be included in the gross income by Python.

2. Jacob

If the United Nations is a not-for-profit organization or qualified governmental agency, Jacob will not include the $1,400,000 Nobel Peace Prize he got and donated to the United Nations in his gross income.

If we therefore assumed that the United Nations is a not-for-profit organization or qualified governmental agency, Jacob is not required to include $1,400,000 Nobel Peace Prize amount donated to the United Nations in his gross income.

3. Linda

Winning Craig County Fair beauty pageant is not in itself a qualified achievement like scientific and artistic achievements. But the award of $6,000 tuition to Linda is a qualified scholarship that she can exclude from his gross income, while the award of $4,000 he got for meals and housing is not qualified to be excluded.

Therefore, Linda is required to include $4,000 in her gross income.

All the best.