Two years ago, Lodi, Incorporated's shareholders voted to dissolve the corporation. Pursuant to the dissolution, Lodi sold all its assets,

paid off its outstanding debts, and distributed $$865,000$ remaining cash to its shareholders in complete liquidation of their equity. This

year, the IRS determined that Lodi underpaid its corporate income tax for its last three years. The tax deficiency totaled $$1\mathrm{.}30$ million.

Required:

a$.$ To what extent can the IRS collect the deficiency from the former Lodi shareholders?

b$.$ MN Partnership was a $5$ percent shareholder that received a $$43,250$ liquidating distribution from Lodi. How much tax can the IRS

collect from MN partnership?

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Required B

To what extent can the IRS collect the deficiency from the former Lodi shareholders?

Note: Enter your answer in dollars and not in millions of dollars.

Amount IRS can collect from the former Lodi shareholders is