An active duty military service member's state of legal residence (domicile) is California, but he was stationed outside the state on permanent change of station orders for the entire tax year. His income was: $39,000 military pay, $200 interest (savings account in a California credit union), and $1,000 capital gain on the sale of stock. Which of the following statements is correct?

A. He must file a California resident return; his taxable income under California law is $39,000.

B. He must file a California nonresident return; his taxable income under California law is $39,000.

C. He must file a California resident return; his taxable income under California law is $40,200.

D. He is considered a nonresident of California and is not required to file a California return. He has no California taxable income.