Question $8$

$1$ pts

Dried Fruit Corp. has had a valid S Corp election in effect at all times since its incorporation. The Dried Fruit Corp. stock is owned one$-$third by Raisin and two$-$thirds by Prune. All shareholders are US resident citizen individuals. At the beginning of the current year, Raisin's basis in his shares was $$96,000$ and Prune's basis in her shares was $$32,000.$ During the current year. Dried Fruit Corp. earned $$576,000$ of net income from operations. Raisin's share was $$192,000$; Prune's share was $$384,000.$ On July $1$st$,$ Dried Fruit Corp. distributed $$256,000$ to Raisin and $$512,000$ to Prune. How much gain does Prune recognize as a result of this transaction?

$$0$

$$32,000$

$$96,000$

$$64,000$