Perdida is a member of a group disability plan where she works. The plan offers the employees both long-term (LTD) and short-term (STD) disability benefits. The STD coverage premiums are non-participatory, but the employer and employees share the LTD premiums equally. The employer does not report the premiums it pays as a taxable benefit to the employees. Over the six years that Perdida has been a member of the group plan she and her employer have each paid a total of $2,400 in premiums for the LTD coverage. Last year Perdida filed her first LTD claim, receiving $6,000 in benefits. How much of the LTD benefits that Perdida received would have been tax-free to her? Question 11 options: A) $6,000 B) $4,800 C) $0 D) $2,400

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The detailed answer for the above question is provided below To determine the portion of the long... View the full answer