A Company Has a Medical Reimbursement Plan for Officers That

A company has a medical reimbursement plan for officers that covers all costs that the company's insurer will not pay.However, for all employees who are not officers, the medical reimbursement plan applies only after the employee has paid $1,000 from his or her own funds.An officer incurred $1,500 in medical expenses and was reimbursed for that amount.An hourly worker also incurred $1,500 in medical expense and was reimbursed $500.

A) Both employees must include all benefits received in gross income.
B) The officer must include $500 in gross income.
C) The officer must include $1,500 in gross income.
D) The hourly employee must include $1,000 in gross income.
E) None of these.