Steven's Schedule K-1 (Form 1120-S) for the current tax year shows only the following items: $25,500 in ordinary business income, $2,000 in portfolio interest income, $2,500 in net shortterm capital gain, and $4,000 in net Section 1231 gain from a sale of business property. It also shows a $5,500 distribution, which affects his basis. His adjusted basis at the beginning of the tax year was $50,750, and nothing else during the year affected his basis. He has no losses from other sources to offset the gains. What amount(s) from this Schedule K-1 would be taxable income to Steven on his individual Form 1040 tax return? a) $34,000 b) $37,500 c) $37,000 d) $35,500