Jones operates an upscale restaurant and he pays experienced cooks $35,000 per year. This year he hired his son as an apprentice cook. Jones agreed to pay his son $40,000 per year. Which of the following is a true statement about this transaction?

a. Jones will be allowed to deduct $40,000 only if his son eventually develops into an expert cook.

b. Jones will be allowed to accrue $40,000 only if he pays his son in cash.

c. Jones will be allowed to deduct $35,000 as compensation and another $5,000 can be deducted as an employee gift.

d. Jones can only deduct $20,000 because an apprentice cook is only worth half as much as an experienced cook.

e. None of these.