Terry was ill for three months and missed work during this period. During his illness, terry received $8,850 in sick pay from a disability insurcance policy.

a terry has disability insutance provided by his employer as a nontaxble fring benefit. Terry's employer paid $7,050 in disability premiums fot terry this year.

b.terry paid $7,050 in premiums for his disability insutance this year.

c.terry's employer paid the $7,050 in premiums for terry , but terry elected to have his employer include the $7,050 as compensation on terry's W-2.

d.Terry has disability insurance whose cost is shared with his employer. terry's emp;oyer paid $4,300 in disability premiums of terry this year as a nontaxable fringe benefit, and terry paid the remaining $2,750 of premiums from his after-tax salary.