How to Report Tech Makeover Award for Business Valued at $7,500

Yes, it would be the same as "winning" cash and then purchasing the business expenses. 

Enter the award as business income, and also enter the services as an expense. Enter the equipment as assets or, depending on the values, expense the total amount using Section 179 deduction. 

If you win $100 , you would need to claim that 100 as income. 

If you then bought 100 in business supplies, you could "expense" 100 as a business expense. This 100 expense will lower your future business income, not the income of the prize. Your business makes 100. You would have 100 prize income and 100 business income and 100 expense, which would net 100 income. 

If someone gives you business supplies worth $100, and you also earn 100 Business income, you would have 100 prize income and 100 business income, so you would also add the 100 expense, which would again net 100 income.