McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 22

Larry Bounds has won the gold bat award for hitting the longest home run in major league baseball this year.The bat is worth almost $35,000.Under what conditions can Larry exclude the award from his gross income? Explain.