In Which of the Following Situations Does the Taxpayer Have

In which of the following situations does the taxpayer have a claim of right to the payment received? Ellen is on the Carlyle city council. She accepts $5,000 from a contractor who is seeking I. II. rezoning of his land before the commission on the condition that Ellen supports the rezoning. The payment is illegal under state law and Ellen will have to repay the $5,000 if the arrangement with the contractor is discovered. Alan's automobile is damaged in an automobile accident. Because he uses the automobile in his job, his employer gives him $4,000 to have the car repaired. The employer will withhold $100 per paycheck until the $4,000 is repaid.

A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.