Red Co$.$ provides a workout facility on the top floor of their office building for use by employees. The facility is operated by Red Co$.$ and is not available for use by the general public. Scarlette, who recently retired from Red Co$.,$ uses the facility regularly and her $15-$year$-$old son, Ryker, has recently started using it as well. Ryker is not employed by Red Co$.$ Which of the following statements regarding their use of the athletic facility is correct?

Question $19$ options:

a$)$

Scarlette and Ryker $($her dependent$)$ can use the facility without cost or taxable income as a retired employee.

b$)$

Scarlette will be taxed on the use of the facility based on the average cost of a family membership to a similar facility that is open to the public.

c$)$

Scarlette can use the facility without cost or taxable income as a retired employee; however, she must either pay a guest fee or be taxed on the value of the use of the facility for Ryker.

d$)$

Scarlette's use of the facility will cause the value of the use of the facility to be taxable income to all employees of Red Co$.$