Gwenyth is the manager of a motel. The employer gives Gwenyth the option of living on site at the motel if she wants (value of $600 per month) or receiving an additional $500 per month. Gwenyth appreciates the rent-free housing and considers this a fringe benefit, since she would otherwise be required to pay $650 per month rent for an apartment. The room that Gwenyth occupies normally rents for $30 per night, or $900 per month. On the average, 90% of the motel rooms are occupied. As a result of this rent-free use of a room, Gwenyth is required to include in gross income:

a 810

b500

c 600

d 900

e none of the above