Pink Bird, Inc. is an S corporation that employs Anders, the sole shareholder. Anders is a highly skilled engineer. Last year, the market salary for an engineer of Anders's experience was $83,000. Pink Bird paid Anders a salary of $25,000 and made an income distribution of $104,000. What advice should you give to Pink Bird and Anders?

A)Reduce the amount of Anders's salary and pass more of the corporation's earnings through as a distribution in order to reduce the amount of payroll taxes paid.

B)Reduce the amount of Anders's salary and increase the amount of the distribution in order to apply the individual tax rates (rather than corporate tax rates) to a larger portion of the income.

C)Increase Anders's salary and decrease the amount of the distribution in order to increase the amount available for the qualified business income deduction.

D)Increase Anders's salary in order to meet the "reasonable salary" requirement and to avoid potential IRS assessments and penalties.