Gordon had a full-time job as a sales manager for a meat wholesaler. Last year, he earned a salary of $85,000; he also received a bonus of $10,000 on March 31st of this year based on his excellent performance last year. He is a member of his employer's defined-benefit pension plan and he is required to contribute 5% of his base salary to the plan each year. In addition to his salary, bonus and pension plan, he enjoys many company benefits. Gordon is a member of his employer's group life insurance plan and group disability plan-his employer pays the premiums in both cases. He is also permitted to use a corporate vehicle for his personal use and like all other employees of the company, Gordon can purchase various meat products at cost. Gordon was able to borrow $120,000 from his employer on January 1st of last year, at a rate of 3% compounded annually to purchase a rental property on Rice Street. The building was valued at $80,000; the land was valued at $40,000. He agreed to repay the loan in full at the end of three years. Gordon was able to rent out the house as of February 1st of last year for $1,300 per month. Rental expenses during the year amounted to $5,780, not including loan interest of $3,600. Excited by his initial success as a landlord, Gordon decided to purchase a second rental property on Leeman Avenue. For this purpose, his wife, Sandra, lent him $130,000 via a loan for value in August of last year. The land was valued at $42,000; the building was valued at $88,000. Like Gordon's first rental property, the second rental property was in great condition and was immediately ready for renting. However, Gordon was only able to secure a tenant in December of last year, charging rent of $1,200 per month. By that time, Gordon had already spent $1,400 on property taxes, $500 in lawn maintenance services, $400 in advertising and loan interest of $3,640 with respect to this property. Both of Gordon's rental buildings fall into CCA class 1, which has a maximum CCA rate of 4%. What statement is true? 1. Gordon can elect to report his bonus on either his tax return for last year or on his tax return for this year depending on which option is more advantageous. 2. Gordon can deduct his contributions to his employer's pension plan from his income. 3. Gordon has a taxable benefit to the extent that the fair market value of the meat products that he buys exceeds the amount that he paid for them. 4. The premiums that his employer pays to both group plans are a taxable benefit. a)1 and 2 b)3 and 4 c) 3 only d) 2 only