If the Stock Received as a Nontaxable Stock Dividend Is

question 54

True/False

If the stock received as a nontaxable stock dividend is not the same type as the stock owned prior to the dividend,the allocation of basis is based on relative fair market values of the stock.

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Definitions:

Sufficient Funds

A term indicating that an account has enough available money to cover transactions such as withdrawals, checks, or payments.

Money Orders

Payment orders for a specified amount of money that are a secure alternative to cash or personal checks.

UCC

Refers to the Uniform Commercial Code, a set of laws governing sales and commercial transactions in the United States.

Checks

Banking instruments that order a bank to pay a specific amount of money from the writer's account to the person or entity in whose name the check has been issued.