Oxen Corporation Incurs the Following Transactions

Oxen Corporation incurs the following transactions. Oxen maintains a valid S election and does not distribute any assets (cash or property) to its sole shareholder, Megan.As a result, Megan must recognize (ignore 20% QBI deduction) :

A) Ordinary income of $103,000.
B) Ordinary income of $103,000 and long-term capital gain of $6,000.
C) Ordinary income of $103,000, long-term capital gain of $10,000, and $4,000 short-term capital loss.
D) Ordinary income of $109,000.