You are helping a new retail store owner establish some policies. She is planning on hiring two store managers and several sales clerks. In order to increase the attractiveness of the manager positions, she plans on providing only the managers with a discount for store inventory purchases that they make. The owner does not plan on providing any discounts to the store clerks. She comes to you for advice on her plan. 

a. Review Section 132 of the Code. Under certain circumstances, are employee discounts able to be excluded from the employee's income? Provide specific citations to support conclusion. 

b. Given the facts your client has provided you, is there a problem with her plan? Why or why not? What is authority for conclusion?