Sharon’s automobile slid into a ditch. A stranger pulled her out. Sharon offered to pay $25, but the stranger refused. Sharon slipped the $25 in the stranger’s truck when he was not looking.

The $25 is a nontaxable gift received by the stranger because Sharon was not legally required to pay him.

The $25 is a nontaxable gift because the stranger did not ask to receive it.

The $25 is taxable compensation for services rendered.

The $25 is a nontaxable service award.

None of the above.