Blue, Red, and White Corporations File Federal Tax Returns on a Consolidated

Blue, Red, and White Corporations file Federal tax returns on a consolidated basis.The group's tax return has been under audit.Under a valid tax-sharing agreement, each corporation is liable for one-third of the group's consolidated tax liability.The parties have agreed that the group's unpaid liability for the year is $350,000.Because of an incorrect tax return position, $120,000 interest and a $90,000 penalty is attributable to Blue.At present, only Red is solvent and has the cash with which to make such a substantial tax payment.What is the maximum amount for which the IRS could be successful in forcing Red to satisfy the outstanding liabilities of the consolidated group?

A) $560,000.
B) $350,000.
C) $116,667.
D) $186,667.
E) Some other amount.