Howard participates in his company's group insurance plan which provides him with a monthly disability benefit of $1500. He and his employer both share the cost of disability premiums 50/50. Since becoming a member of the plan, both he and his employer have paid $4200 in group disability premiums. Since becoming a member of the plan, Howard has never filed a claim. In January last year, he was off work for eight months and received $12,000 in disability benefits. What amount of the total benefits will be considered a taxable benefit to Howard? Select one: a. $7,800. b. $9,270. C. $4,200. d. $12,000.