Question # $21$: Jake is a member of his employer's group insurance policy. Jake earns a salary of $$85,000$ and is covered for $70\%$ of his salary for STD and $60\%$ of his salary for LTD$.$ Jake's employer pays $100\%$ of the premiums for his STD coverage and $50\%$ of the premiums for his LTD coverage. Jake pays $$\frac{150}{?}$ month to cover the remaining $50\%$ of the premiums towards his LTD coverage. After working for his employer for three years, Jake suffers a disability and receives STD benefits for one year, followed by LTD benefits for two years. Identify the statement that best describes the tax treatment of this scenario.

a$)$ Jake's LTD benefits are taxable after the total premiums paid have been refunded.

b$)$ Fifty percent of Jake's LTD benefits will be taxable.

c$)$ The premiums paid for LTD are tax$-$deductible for both Jake and his employer.

d$)$ Jake's STD benefits will not be treated as taxable benefits.