A Is Employed in Chicago as a Stewardess for AMX

A is employed in Chicago as a stewardess for AMX Airlines.The airline has a policy that allows employees to fly without charge on a standby basis only.In September, A flies from Chicago to Los Angeles to visit her father.The value of the ticket is $400.B is employed as a manager of the HMO Hotel in Chicago.HMO has a reciprocal agreement with the DEF Hotel in Boston that allows employees of both hotels to stay free of charge at either hotel provided space is available.In October, B spends two nights in Boston at the DEF Hotel.The value of the room for the two nights is $350.The tax consequences of these benefits are:

A) A can exclude the value of the airplane ticket from the gross income and B can exclude the value of the hotel room from gross income.
B) A must include the value of the airplane ticket in gross income but the value of the hotel room to B is tax-free.
C) B must include the value of the hotel room in gross income but the value of the airplane ticket to A is tax-free.
D) A must include the value of the airplane ticket in gross income and B must include the value of the hotel room in gross income.