Tia Owns 2,000 Shares of Bass Corporation Common Stock with an $80,000

question 38

Multiple Choice

Tia owns 2,000 shares of Bass Corporation common stock with an $80,000 basis. Bass distributes a nontaxable preferred stock dividend. When the preferred stock is distributed, it has an FMV of $60,000 and the FMV of the 2,000 common stock shares is $180,000. The basis of the preferred stock is

• A)$0.
• B)$20,000.
• C)$60,000.
• D)$80,000.

---

Definitions:

Psychological Distress

A general state of emotional suffering or discomfort often characterized by symptoms of anxiety or depression, without a specific underlying medical condition.

Life Changes

Significant transitions or alterations in an individual's circumstances, which can impact their lifestyle, relationships, or mental health.

Constructive Coping

Strategies used to deal with stress in a positive manner that promotes growth and problem solving.

High Level Of Stress

A condition resulting from situations that are perceived as demanding or threatening, leading to physical and psychological strain.