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

Question

Marshall Medina

Business

11 July, 02:26

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

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Harley Parks · Answer 1

His gross income would be $1 million but he should get some credit for the$400,000 donation as a percentage of that amount so this would reduce his income tax for that year accordingly and benefit him for his generosity.