Employees of the Valley Country Club Are Allowed to Use

Employees of the Valley Country Club are allowed to use the golf course without charge before and after working hours on Mondays,when the number of players on the course is at its lowest.Tom,an employee of the country club played 40 rounds of golf during the year at no charge when the non-employee charge was $20 per round.

A) Tom must include $800 in gross income.
B) Tom must include in gross income the employer's marginal cost of providing the golf course and equipment.
C) Tom is not required to include anything in gross income because this is a "no-additional-cost service" fringe benefit.
D) Tom is not required to include the $800 in gross income because the use of the course was a gift.
E) None of the above.