Blake works the assembly line for Titans, Inc. Titans pays their employees $5,000 to spend on benefits. Titan's offers disability insurance, group-term life insurance, health insurance, dependent care assistance, and 401(k) plans through a cafeteria plan. Blake's wife carries the health insurance for the family and her employer provides childcare services on site. Blake spends $500 on a groupterm life insurance policy of $30,000 and contributes $3,000 to his 401(k) plan. How much of the fringe benefit must Blake include as taxable income? $3,500 $0 $5,000 $1,500