Mr Sherman Incurred $7,000 of Employment-Related Business Expenses

Mr. Sherman incurred $7,000 of employment-related business expenses. Which of the following statements is true?

A) If his employer reimbursed him for these expenses, Mr. Sherman must include the reimbursement in gross income.
B) If his employer reimbursed him for $3,000 of the expenses, Mr. Sherman is allowed a $4,000 above-the-line deduction.
C) If his employer reimbursed him for $3,000 of the expenses, Mr. Sherman is allowed a $4,000 itemized deduction.
D) If his employer reimbursed him for $3,000 of the expenses, Mr. Sherman has a $4,000 nondeductible expense.