Clarence Hardy is an employee at the Drake Candy Corporation, an S corporation.

Clarence and other employees are covered under a disability income plan that will

pay him 50% of his $96,000 salary if he becomes disabled. The company adds the

pro rata cost of the plan to each employee's W-2. Clarence is in the 25% income tax

bracket. What is the amount of monthly disability benefits Clarence will receive after

tax if he remains in the same tax bracket when disabled?

a. $2,250.

b. $3,000.

c. $3,500.

d. $4,000.