Randy Is the Manager of a Motel

Randy is the manager of a motel.As a condition of his employment, Randy is required to live in a room on the premises so that he would be there in case of emergencies.Randy considered this a fringe benefit since he would otherwise be required to pay $800 per month rent.The room that Randy occupied normally rented for $70 per night, or $2,100 per month.On the average, 90% of the motel rooms were occupied.As a result of this rent-free use of a room, Randy is required to include in gross income.

A) $-0-.
B) $800 per month.
C) $2,100 per month.
D) $1,890 ($2,100 × 0.90) .
E) None of these.