The Williamson Estate Generated Distributable Net Income (DNI)this Year of $120,000,one-Third

The Williamson Estate generated distributable net income (DNI) this year of $120,000,one-third of which was tax-exempt interest,and the balance of which was long-term capital gain.Muffy Williamson,the sole income beneficiary of the estate,received a distribution of the entire $150,000 fiduciary accounting income of the entity.How is this distribution accounted for by Muffy?

A) $150,000 ordinary income.
B) $120,000 ordinary income.
C) $80,000 long-term capital gain, $40,000 exempt interest.
D) $100,000 long-term capital gain, $50,000 exempt interest.