Khaki Company is a Subchapter S corporation. It properly reported net income of $100,000 for financial statement purposes. It had charitable contributions of $5,000 and dividend income of $10,000 from a large domestic publicly traded company. What is the ordinary business income of Khaki Company that will be reported to its shareholders on Schedule K-1?

Multiple Choice

• $90,000.

• $93,000.

• $95,000.

• $100,000.