Matilda Works for a Company with 1,000 Employees

Matilda works for a company with 1,000 employees.The company has a hospitalization insurance plan that covers all employees.However,the employee must pay the first $3,000 of his or her medical expenses each year.Each year,the employer contributes $1,500 to each employee's health savings account (HSA) .Matilda's employer made the contributions in 2010 and 2011,and the account earned $100 interest in 2011.At the end of 2011,Matilda withdrew $3,100 from the account to pay the deductible portion of her medical expenses for the year and other medical expenses not covered by the hospitalization insurance policy.As a result,Matilda must include in her 2011 gross income:

A) $0.
B) $100.
C) $1,600.
D) $3,100.
E) None of the above.