A hospital gives June, an employee, a choice of living at the hospital free of charge or living elsewhere and receiving a cash allowance in addition to her salary. Which of the following statements is correct regarding June's situation?

a. If June chooses to receive the cash allowance in addition to her salary, the hospital will not be required to report the payment as wages.
b. If June chooses to live at the hospital, the value of the lodging cannot be excluded from her wages.
c. If June chooses to receive the cash allowance in addition to her salary, the hospital may reduce her taxable wages by the value of the free room.
d. If June chooses to live at the hospital, the value of the lodging can be excluded from her wages.



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