As of January 1, year 6, Kane owned all the 100 issued shares of Manning Corp., a calendar year S corporation. On the 41st day of year 6, Kane sold 25 of the Manning shares to Rodgers. For the year ended December 31, year 6 (a 365-day calendar year), Manning had $73,000 in nonseparately stated income and made no distributions to its shareholders. What amount of nonseparately stated income from Manning should be reported on Kane’s year 6 tax return?
a. $56,750
b. $54,750
c. $16,250
d. $0