Corporation A owns 15 percent of the stock of corporation B. Corporation B pays corporation A $100,000 in dividends in 2002. Corporation A must pay tax on ________.

(a) $ 30,000 of ordinary income

(b) $ 70,000 of capital gain

(c) $100,000 of ordinary income

(d) $ 70,000 of ordinary income

(Please explain your answer)