Bobby Vandor receives a nontaxable stock dividend of 20 shares of preferred stock on his Ohio Corporation common stock. Bobby purchased the 300 shares of common stock two years ago for $14,000. On the date of distribution, the fair market value of the common stock was $85 per share and the fair market value of the preferred was $200 per share. What is the new basis, per share, of the common stock and preferred stock?
Bobby Vandor receives a nontaxable stock dividend of 20 shares of preferred stock on his Ohio Corporation common stock. Bobby purchased the 300 shares of common stock two years ago for $14,000. On the date of distribution, the fair market value of the common stock was $85 per share and the fair market value of the preferred was $200 per share. What is the new basis, per share, of the common stock and preferred stock?
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 66P
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Bobby Vandor receives a nontaxable stock dividend of 20 shares of
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT