Matt works for Fresh Corporation. Fresh offers a cafeteria plan that allows each employee to receive $15,000 worth of benefits each year. The menu of benefits is as follows:

Benefit Cost Health insurance—single $ 5,000 Health insurance—with spouse $ 8,000 Health insurance—with spouse and dependents $11,000 Dental and vision $ 1,500 Dependent care—any specified amount up to $5,000 Variable Adoption benefits—any specified amount up to $5,000 Variable Educational benefits—any specified amount (no limit) Variable Cash—any specified amount up to $15,000 plan benefit Variable 401(k)—any specified amount up to $10,000 Variable For each of the following independent circumstances, determine the amount of income Matt must recognize and the amount of deduction Fresh may claim:

a) Matt selects the single health insurance and places $10,000 in his 401(k).

b) Matt selects the single health insurance, is reimbursed $5,000 for MBA tuition, and takes the remainder in cash.

c) Matt selects the single health insurance and is reimbursed for MBA tuition of $10,000.

d) Matt gets married and selects the health insurance with his spouse and takes the rest in cash to help pay for the wedding.

e) Matt elects to take all cash.