Ramsey Corporation Allows an Employee, Corrine, to Use a Company

Multiple Choice

Ramsey Corporation allows an employee, Corrine, to use a company car for her vacation to San Diego.
I.Corrine will not need to recognize the value of the use of the car since it was not cash.
II.A "cash equivalent approach" is used to measure the amount of income that must be recognized by Corrine.
III.The employer/employee relationship indicates that the receipt of the use of the car is a type of compensation for services rendered.
IV.Income recognition is not necessary in this case.
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A) Only statement I is correct.
B) Only statement IV is correct.
C) Only statements II and III are correct.
D) Only statements I and IV are correct.
E) Only statements II, III, and IV are correct.