For its year ended December 31, 2018, Cupressa Corporation, an S corporation, had net income of $216,000 which included $180,000 of ordinary income from operations and a $36,000 net long-term capital gain. During 2018, a total of $90,000 was distributed to the corporation's nine equal shareholders, all of whom are on a calendar-year tax basis. For 2018, each shareholder should report:
a.$24,000 ordinary income
b.$20,000 ordinary income and $4,000 net long-term capital gain
c.$20,000 ordinary income
d.$10,000 ordinary income
e. None of these choices are correct.
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