As an Executive of Cherry, Inc

As an executive of Cherry, Inc., Ollie receives a fringe benefit in the form of annual tuition scholarships of $10,000 to each of his three children.The scholarships are paid by the company directly to each child's educational institution and are payable only if the student maintains a B average.

A) The tuition payments of $30,000 may be excluded from Ollie's gross income as a scholarship.
B) The tuition payments of $10,000 each must be included in the child's gross income.
C) The tuition payments of $30,000 may be excluded from Ollie's gross income because the payments are for the academic achievements of the children.
D) The tuition payments of $30,000 must be included in Ollie's gross income.
E) None of the above.