ABC Corp. has one shareholder, George, who owns 100% of the ABC stock. George owns the building where ABC Corp. conducts its business. ABC Corp. occupies the entire building and leases it at a monthly cost of $10,000. In 2018, the IRS audited ABC Corp.s tax return and found that the monthly lease expense was unreasonably high and should have paid only $8000 per month. Which of the following, if any, is correct:

a. IRS does not have the authority to disallow $24,000 of ABC Corp.s building rent expense for the year, but George will be attributed with a constructive dividend of $24,000 for the year.

b. IRS will disallow $24,000 of ABC Corp.s building rent expense for the year resulting in a constructive dividend paid to George of $24,000.

c. There is no such thing as a constructive dividend resulting from the IRS disallowing $24,000 of excessive building rent expense.

d. None of the other choices are correct.

e. IRS will disallow $120,000 of ABC Corp.s building rent expense for the year resulting in a constructive dividend paid to George of $120,000.