Ovi Is a Sales Representative for a Local Company

Ovi is a sales representative for a local company. His sales territory crosses the state so he incurs substantial travel costs as a requirement of his job. Ovi maintains good records, and the travel costs total $3,000 for the year. His company provides him an expense allowance under a nonaccountable plan. How will Ovi treat the $2,000 partial reimbursement and the $3,000 of total business travel costs?
A) Reimbursement- exclude from income; travel costs- none are deductible
B) Reimbursement- include in income; travel costs- none are deductible
C) Reimbursement- include in income; travel costs- $2,000 are deductible and the $1,000 balance is not deductible
D) Reimbursement- include in income; travel costs- deduct the full $3,000