Under swan company's cafeteria plan, all full-time employees are allowed to select any combination of the following benefits, but the total received by each employee cannot exceed $8,000 a year. i group medical and hospitalization insurance for the employee, $3,600 a year. ii group medical and hospitalization insurance for the employee's spouse and children, $1,200 a year. iii. child care payments, actual cost but not more than $4,800 a year. iv. cash required to bring the total of benefits and cash to $8,000. which of the following statements is true? a. sam, a full-time employee, selects choices ii and iii and $2,000 cash. his gross income must include the $2,000.
b. paul, a full time employee, elects to receive $8,000 cash because his wife's employer provided these same insurance benefits for him. paul is not required to include the $8,000 in gross income.
c. sue, a full-time employee, elects to receive choices i, ii and $3,200 for iii. sue is required to include $3,200 in gross income.
d. all of these.
e. none of these.