Lucinda is a 60% shareholder in Rhea Corporation, a calendar year S corporation. During the year, Rhea Corporation had gross income of $550,000 and operating expenses of $380,000. In addition, the corporation sold land that had been held for investment purposes for a short-term capital gain of $30,000. During the year, Rhea Corporation distributed $50,000 to Lucinda. With respect to this information, which of the following statements is correct?
a. Rhea Corporation will pay tax on taxable income of $200,000.b.Lucinda reports ordinary income of $50,000.c.Lucinda reports ordinary income of $120,000. d. Lucinda reports ordinary income of $102,000 an a short-term capital gain of $18,000. e. None of the above.