Oxen Corporation incurs the following transactions. Net income from operations $100,000 Interest income from savings account 3,000 Long-term capital gain from sale of securities 10,000 Short-term capital loss from sale of securities 4,000 Oxen maintains a valid S election and does not distribute any assets (cash or property) to its sole shareholder, Megan. As a result, Megan must recognize (ignore 20% QBI deduction): a.Ordinary income of $109,000. b.Ordinary income of $103,000 and long-term capital gain of $6,000. c.Ordinary income of $103,000. d.Ordinary income of $103,000, long-term capital gain of $10,000, and $4,000 short-term capital loss.Pepper, Inc., an S corporation, holds a $1 million balance in accumulated E&P. It reports sales revenues of $400,000, taxable interest of $380,000, operating expenses of $250,000, and deductions attributable to the interest income of $140,000. What is Pepper's passive income penalty tax payable, if any? a.$380,000. b.$116,842. c.$24,537. d.$0