Carmen Owns 10% of the Stock of Fitness Design Corporation

Carmen owns 10% of the stock of Fitness Design Corporation, and is its manager. Fitness Design reports taxable income of $70,000 and pays $60,000 in dividends to shareholders before considering payments to Carmen. Carmen receives a $50,000 salary. What is Carmen's income from Fitness Design?

A) $6,000
B) $7,000
C) $50,000
D) $56,000
E) $57,000