Short Company allows a 20% discount to all non-officer employees. Officers, all highly compensated, are allowed a 30% discount on company products. Shorts gross profit is 35%. Which of the following is true?

An officer who takes a 30% discount must include the extra 10% (30%-20%) in gross income.

All discounts taken by employees are includible because the plan is discriminatory.

All discounts taken by officers (30%) are includible because the plan is discriminatory.

None of the discounts are includible in income because the discount in all cases is less than the companys gross profit percentage.