Calibash, Inc. is a large employer, who has decided to implement employee achievement awards through a non-qualified plan. They have 10 employees, and will distribute $50,000 amongst the 10 of them. Depending on how long they have been with the company, they will receive various items, like a television, candy, or other tangible personal property--cash will not be given out. How much may each employee exclude from gross income. a) They may exclude the entire award because it is based on length of service. b) They may exclude the entire award because they are receiving tangible personal property. c) They may exclude up to $400, with any excess reported as gross income. d) They may not exclude any of the award, since $5,000 is disproportionate to the allowable $400 amount.