?Lemon Corporation Incurs the Following Transactions ?
Lemon Maintains a Valid S Election and Does Not

?Lemon Corporation incurs the following transactions. ? $$\begin{array} { l r } \text { Net income from operations } & \$ 110,000 \\\text { Interest income from saving account } & 5,000 \\\text { Long-term capital gain from sale of securities } & 9,000 \\\text { Short-term capital loss from sale of securities } & 4,000\end{array}$$ ?
Lemon maintains a valid S election and does not distribute any dividends to its shareholder,
Patty.As a result, Patty must recognize:

A) ?Ordinary income of $115,000 and long-term capital gain of $5,000
B) ?Ordinary income of $115,000, long-term capital gain of $9,000 and $4,000 short-term capital loss.
C) ?Ordinary income of $120,000.
D) ?None of the above.