Paige owns 1,000 shares of Grubstake Mining & Development common stock. Grubstake is organized as an S corporation and has 100,000 share outstanding. Grubstake reported taxable income of $200,000 and paid a distribution of $1.00 per share during the current year. Grubstake typically does not send out its K-1 reports until late April. However, its preliminary report has been consistent with the K-1 for many years. Which indicates the following: Distribution to shareholder $1,000 Ordinary income (1% of $200,000) $2,000 Paige does not materially participate in Grubstake's activities. Where and how are these amounts included and taxed on an individual's tax return