Heather Is a Full-Time Employee of Drake Company and Participates

Heather is a full-time employee of Drake Company and participates in the company's flexible spending plan that is available to all employees.Which of the following is correct?

A) Heather reduced her salary by $1,200, actually spent $1,500, and received only $1,200 as reimbursement for her medical expenses.Heather's gross income will be reduced by $1,500.
B) Heather reduced her salary by $1,200 and received only $900 as reimbursement for her actual medical expenses.She is not refunded the $300 remaining balance, but her gross income is reduced by $1,200.
C) Heather reduced her salary by $1,200 and received only $800 as reimbursement for her medical expenses. She is not refunded the $400.Her gross income is reduced by $800.
D) Heather reduced her salary by $1,200 and received only $900 as reimbursement for her medical expenses. She forfeits the $300.Her gross income is reduced by $300.
E) None of these.