Laverne is an employee at a bowling alley owned by HB Corp. HB sells bowling balls at its alleys. HB$$s gross income from ball sales is $$1,000,000$ and its cost of goods sold is $$700,000.$ HB provides its employees with a $40\%$ discount on product purchases and allows employees to bowl for free. In addition to bowling alleys, HB also owns a chain of motels, where employees can stay for free if there are empty rooms. None of HB$$s fringe benefits discriminate in favor of highly compensated employees.

Laverne stays for free for one night at one of HB$$s hotels when there are available rooms. The room normally costs $$175$ per night. How much income will Laverne recognize from this?

Laverne is an employee at a bowling alley owned by HB Corp. HB sells bowling balls at its alleys. HB$$s gross income from ball sales is $$1,000,000$ and its cost of goods sold is $$700,000.$ HB provides its employees with a $40\%$ discount on product purchases and allows employees to bowl for free. In addition to bowling alleys, HB also owns a chain of motels, where employees can stay for free if there are empty rooms. None of HB$$s fringe benefits discriminate in favor of highly compensated employees.

Laverne stays for free for one night at one of HB$$s hotels when there are available rooms. The room normally costs $$175$ per night. How much income will Laverne recognize from this?

A$.$ $$175$

B$.$ $$140$

C$.$ $$35$

D$.$ $$0$