Roberto Is a Furniture Salesman for Gerald's Furniture Mart

Roberto is a furniture salesman for Gerald's Furniture Mart. Roberto purchases a bedroom suite from Gerald's for $8,000. The sticker price is $11,000. Gerald's policy is to "discount" all customer purchases for up to $1,000 off of the sticker price for purchases over $10,000. What is the tax treatment of Roberto's furniture purchase?
I.Roberto must include $3,000 in his gross income.
II.Gerald's Furniture Mart can deduct $2,000 as compensation expense in addition to properly accounting for the sale of the furniture.
III.Roberto does not need to account for the furniture purchase since it is for his personal use.
IV.Roberto has imputed income because of the nature of the furniture purchase.
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A) Only statement I is correct.
B) Only statement III is correct.
C) Only statements I and IV are correct.
D) Only statement IV is correct.
E) Only statements II, and IV are correct.