Michael works for American Airlines. His employer provided the following fringe benefits: 1. A pre-tax flexible medical spending account of $2,500. Michael presented receipts for $2,500 and was reimbursed that amount. 2. Group term life insurance coverage of $100,000 at $10 per $1,000. 3. Standby ticket valued at $3,200 for a flight to London for Michael's vacation. 4. A deluxe room valued at $3,000 at American Airline's partner, the London Marriott, for three nights. 5. Typing and copy machine service valued at $20 for his son's 30-page term paper. What amount should Michael include in income? a. $6,520 b. $3,500 c. $9,720 d. $5,500