Kevin and Jennifer Are 60% and 40% Shareholders, Respectively, in an S

Multiple Choice

Kevin and Jennifer are 60% and 40% shareholders, respectively, in an S corporation.If the corporation reports $10,000 of nonseparately stated income and $2,000 of capital gain, how much is allocated to Jennifer?

A) $4,000 income only
B) $4,000 income and $2,000 of capital gain
C) $4,000 income and $800 of capital gain
D) $6,000 income and $2,000 of capital gain