Bob,an Employee of Modern Corp

Bob,an employee of Modern Corp. ,receives a fringe benefit (in lieu of a salary increase) of $1,000.Bob is in a 33% tax bracket.The fringe benefit is nontaxable to Bob.If he had instead paid for the benefit out of his own money,the cost would not be deductible.Bob's after-tax savings from receiving the tax-free benefit is

A) $0.
B) $333.
C) $667.
D) $1,000.