Professional swimmer-attempted to swim across Lake Ontario

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Question

In 1955, Shirley Campbell, a professional swimmer, attempted to swim across Lake Ontario. She was forced to abandon her swim with only one and a half miles to go. She tried again in 1956 under contract to the Toronto Daily Star. The Daily Star paid her $600 for making the attempt and promised to pay an additional $5,000 if she succeeded. Again, she failed. This time a mere one half mile from the finish line on the Toronto shoreline. The Daily Star paid her the $5,000 anyway. The Canadian Tax Appeal Board ruled that the $5,000 was taxable income. How would a United States court have ruled?

Reference no: EM133809304

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