F&D Inc Ceased Operations and Dissolved Under State Law in 2012

question 32

Multiple Choice

F&D Inc. ceased operations and dissolved under state law in 2012. Mrs. Herron, a 20% shareholder, received a $490,300 liquidating distribution from F&D. This year, the IRS determined that F&D underpaid its 2011 and 2012 income tax by $967,100. How much of this deficiency can the IRS assess against Mrs. Herron?

• A)-0-
• B)$193,420
• C)$490,300
• D)$967,100

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