Graphite Corp. has been a calendar$-$year S$-$Corporation since its inception on January $2,$ Year $1.$

On January $2,$ Year $4,$ Smith and Tyler each owned $50$ percent of the Graphite stock, in which their

respective bases were $$12,000$ and $$9,000.$ For the year ended December $31,$ Year $4,$ Graphite

had $$80,000$ in ordinary business income and $$6,000$ in tax$-$exempt income. Graphite made a

$$53,000$ cash distribution to each shareholder on December $31,$ Year $4.$ What total amount of

income from Graphite is includable in Smith$$s Year $4$ adjusted gross income?

a$.$ $$40,000$

b$.$ $$43,000$

c$.$ $$93,000$

d$.$ $$96,000$