Teresa Won $9,000 Playing the Illinois Lottery

Multiple Choice

Teresa won $9,000 playing the Illinois lottery. Which of the following statements is/are correct?
I.Teresa must include the $9,000 in gross income.
II.The All-inclusive Income Concept applies to this situation.
III.Legislative Grace allows Teresa to exclude lottery winnings from recognition.
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A) Only statement I is correct.
B) Only statement II is correct.
C) Only statement III is correct.
D) Only statements I and II are correct.
E) Statements I, II, and III are correct.