Richard gave his wife, Carrie, $100,000 to invest in a new general partnership established by Carrie's friend Sue. According to their partnership agreement, Carrie is entitled to 40% of the profits and losses of the business; Sue is entitled to 60%. After some time, Carrie lost interest in the business and decided to let Sue have full control of the operation while Carrie worked full-time elsewhere. The business realized a profit of $280,000 in its second year. With respect to the taxation of the profit in the second year, what statement is true?

a) Richard has taxable income of $112,000.

b) Sue has taxable income of $280,000.

c) Carrie has taxable income of $112,000.

d) Carrie has taxable income of $140,000.