In 2011 Toni Purchased 100 Shares of Common Stock in Blue

question 33

Multiple Choice

In 2011 Toni purchased 100 shares of common stock in Blue Corporation for $5,280.In 2012,Blue declared a stock dividend of one share of its common stock for each 10 shares held.This year,2014,Blue's common stock split 2 for 1 at a time when the FMV was $80 a share.What is Toni's basis in each of her shares of the Blue Corporation stock if both distributions were tax-free?

• A)$24 per share
• B)$48 for 110 shares and $0 for all additional shares
• C)$52.80 for 100 shares and $0 for all additional shares
• D)$80 per share

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Definitions:

Quantitative Portion

The segment of a study or analysis that involves the collection and processing of numerical data.

Ethnic Group

A social category of people who share a common culture, such as a common language or dialect, a common religion, or common norms, practices, and customs.

Herrnstein and Murray

Authors of "The Bell Curve," a book that explores the relationships among intelligence, race, and socioeconomic status in the United States.

The Bell Curve

A book by Herrnstein and Murray suggesting that human intelligence is substantially influenced by both inherited and environmental factors and is a better predictor of many personal dynamics, including financial income, job performance, birth out of wedlock, and involvement in crime.