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Cactus Corporation, an S Corporation, had accumulated earnings and profits of $100,000 at the beginning...

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Accounting

Cactus Corporation, an S Corporation, had accumulated earnings and profits of $100,000 at the beginning of 2018. Tex and Shirley each own 50% of the stock. Cactus does not make any distributions during 2018, but had $200,000 of ordinary income. In 2019, ordinary income was $100,000 and distributions were $100,000. What is Tex's ordinary income for 2019?

A. 100,000

B. 50,000

C. 200,000

D. 0

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