For the current tax year, VBN, an S Corporation distributes $100,000 to its sole shareholder, Raymond.His basis in the stock was $140,000 before the distribution.VBN had once been a regular C Corporation and had remaining accumulated earnings and profits (E&P) from those years of $70,000.However, VBN has no balance in its accumulated adjustment account.How should the distribution of $100,000 be handled?

A) $70,000 as a taxable dividend; and $30,000 as a capital gain

B) $50,000 as a taxable dividend, and $100,000 as a non taxable return of capital

C) $100,000 as a taxable distribution

D) $70,000as a taxable dividend,and$30,000has a non taxable return of capital