Mason Owns 45% of an S Corporation That Reported Net

Multiple Choice

Mason owns 45% of an S corporation that reported net income of $105,000 for the year.During the year, $20,000 was distributed to Mason from the corporation.Assuming Mason's QBI deduction is not limited, how much is the net amount that Mason is taxed on this year as a result of his investment in the S corporation?

A) $16,000
B) $37,800
C) $45,000
D) $53,800