Corporation S is an S Corporation which elects S status effective January 1 of the tax year specified for the exam. Sole shareholder J has a basis of $400,000 in his stock. At the same time, S has $200,000 in accumulated earnings and profits. For the same tax year, S has the following items of income and expense:

Gross Business Income $250,000

Dividend Income 150,000

Business Expenses 100,000

Expenses Related to Dividends 50,000

a) J has non-separately stated income of $150,000 and dividend income of $100,000

b) J has non-separately stated income of $150,000 and dividend income of $88,333

c) Neither of the above