Marilyn owns 100% of the stock of Lilac, Inc., with an adjusted basis of $95,000. She receives a cash distribution of $160,000 from Lilac when its total current and accumulated E & P are $90,000. What is Marilyns dividend income and capital gain income or loss from the distribution, and what is her basis in the stock after the distribution?

a. $160,000 in dividend income, $0 capital gain, $45,000 basis. b. $90,000 in dividend income, $25,000 capital gain, $0 basis. c. $45,000 in dividend income, $115,000 capital gain, $0 basis. d. $90,000 in dividend income, $0 capital gain, $25,000 basis. e. $115,000 in dividend income, $45,000 capital gain, $0 basis.