Cathy Lyons Has Been Receiving a $100 Monthly Annuity from Her

Cathy Lyons has been receiving a $100 monthly annuity from her qualified plan account over several years. At the end of the current year, her account balance is $100,000, including a $20,000 cost basis. In order to satisfy a personal obligation, she withdraws an extra $5,000 from her account in the current year. fte withdrawal does not affect the amount of her subsequent annuity payments. How much of the $5,000 distribution is taxable?

A) $0
B) $1,000
C) $4,000
D) $5,000