Oxen Corporation Incurs the Following Transactions

Oxen Corporation incurs the following transactions.
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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 $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.