When Rev. Jackson retired, his church furnished him a home (plus utilities) as the part of his pension that was designated as a rental allowance. Which of the following statements is the most accurate for Rev. Jackson or his surviving spouse regarding excluding the rental value (plus utilities) from gross income?

a) Rev. Jackson must report rental value (plus utilities) as income.

b) Rev. Jackson can exclude the rental value (plus utilities) from income.

c) If Rev. Jackson's spouse should become a surviving spouse, they will be able to exclude the rental

value (plus utilities) from income.

d) Neither Rev. Jackson nor his spouse can exclude the rental value (plus utilities) from income.