Salt Corporation owns 70% of the stock of Pepper, Incorporated. Each corporation reports the following separate items for 2021: Salt Pepper Ordinary operating income (loss) $ 500,000 $ (100,000) Capital gain (loss) (5,000) 7,000 Section 1231 gain (loss) 3.000 (10,000) Minimize taxable income for Salt and Pepper in 2021. O $395,000. O $397,000. O $498,000 Salt taxable income and $93,000 Pepper NOL. $500,000 Salt taxable income and $103,000 Pepper NOL. 4