Oxen Corporation Incurs the Following Transactions

question 88

Multiple Choice

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 (ignore 20% QBI deduction) :

• 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.

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