Tommy, a Senior at State College, Receives Free Room and Board

Tommy, a senior at State College, receives free room and board as full compensation for working as a resident advisor at the university dormitory.The regular housing contract is $2,000 a year in total, $1,200 for lodging and $800 for meals in the dormitory.Tommy had the option of receiving the meals or $800 in cash.Tommy accepted the meals.What is Tommy's gross income from working as a resident advisor?

A) $1,800, the entire value of the contract is compensation.
B) $1,000, only the lodging contract must be included in gross income.
C) $800, only the meal contract must be included in gross income.
D) $0, the entire value of the contract is excluded from gross income.
E) None of the above.