During 2012,Oxen Corporation Incurs the Following Transactions

During 2012,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:

A) Ordinary income of $103,000.
B) Ordinary income of $103,000 and long-term capital gain of $5,000.
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.