John owns 6,000 shares of KLM stock, 2,000 shares of BBT Mutual fund, and 10,000 shares of Centex Corporation. Her 1099-DIV forms from these investments showed the following:

KLM: $3 per share distribution all reinvested in KLM BBT Mutual fund: $5 per share distribution, $1 of which

represents a capital gain distribution; none of this is reinvested. Centex: $2 per share distribution, all of which represents a return of capital.

How much must John include in his income in the current year?

a. $40,000

b. $28,000 c. $48,000 d. $19,000