Vaughn is an employee of Rollings, Incorporated and was transferred from its Seattle office to its San Jose office. Vaughn incurred $18,000 of moving expenses to relocate household items to San Jose. Which of the following statements is true?

Multiple Choice

If Rollings paid a $12,000 moving allowance, Vaughn is allowed a $6,000 itemized deduction for moving expenses.

If Rollings paid an $18,000 moving allowance, Vaughn must include $18,000 in gross income.

If Rollings paid a $12,000 moving allowance, Vaughn is allowed a $6,000 above-the line deduction.

Regardless of the amount of any moving allowance paid by Rollings, Vaughn is allowed an $18,000 itemized deduction for unreimbursed moving expenses.