Hilda, Age 11, Earns Wages of $2,700 from Her Modeling

Multiple Choice

Hilda, age 11, earns wages of $2,700 from her modeling. Since the funds are collected by Hilda's father and used for Hilda's living expenses, her father intends to include it in his gross income.
I.The Assignment of Income Doctrine prohibits the father from recognizing the $2,700.
II.Even if Hilda desired to gift the $2,700 to her father, Hilda must recognize the income she earned.
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A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.