Ada is an income investor who is seeking investments that will provide her with a regular stream of income. She is seeking investments that will provide her with a higher yield than the money market funds she owns. Barry, her dealing representative, recommends that Ada invest in the Gardner Mortgage Investment Corporation (MIC). The Gardner MIC will pay Ada distributions on a quarterly basis. When Ada asks Barry how the MIC income will be taxed, What is the CORRECT response that Barry should provide her?