In February, Alan rents a truck to Ken. In March Ken buys new tires for the truck. In September Ken returns the truck, including the new tires, to Alan. Alan did not reimburse Ken for the new tires, nor did he reduce the monthly rent amounts charged to Ken. Alan is NOT required to include the value of the new tires in his gross income that year because:

A. New tires are not the same as cash so, according to the wherewithal to pay concept, receiving the tires did not improve Alans ability to pay tax.

B. The tax benefit rule exempts non-cash transactions.

C. Ken is considered a related party for the arms length concept.

D. The value of the tires exceeded the threshold for the clear reflection of income policy.