Under the Swan Company's Cafeteria Plan, All Full­time Employees Are

Under the Swan Company's cafeteria plan, all full­time employees are allowed to select any combination of the benefits below, but the total received by the employee cannot exceed $8,000 a year.
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 full­time 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 the above.
E) None of the above.