Janelle receives a sterling silver tea set valued at $500from her employer during her retirement dinner for her long years of service.The employer has a tradition of giving awards to some retiring employees,but has no qualified plan.I.$400is excludable from Janelle’s Gross Income.II.The $500is excludable even if her employer only gives awards to its top executives.()
A.Only statement I is correct B.Only statement II is correct C.Both statements are correct D.Neither statement is correct