Randi has just been diagnosed with severe liver disease and will be out of work for eight months. She has a longterm disability policy that will pay her 70% of her currently monthly salary of $3,500. The premium of the policy is $120 per month and half is paid by Luna and the balance is paid by her employer. The elimination period before benefits are payable is 60 days. Assuming that Luna is out of work on disability for the full eight months, how much of her total benefits are taxable? 3500.70%=2450