Bob Owns 100 Shares of ACT Corporation Common Stock with a Basis

question 34

Multiple Choice

Bob owns 100 shares of ACT Corporation common stock with a basis of $3,500 and a FMV of $12,000.Bob receives 10 stock rights as a nontaxable distribution,and no basis is allocated to the stock rights.With each stock right,Bob may acquire one share of stock for $25.Bob exercises all 10 stock rights.The total basis of the newly acquired stock is

• A)$0.
• B)$250.
• C)$350.
• D)$1,200.

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Definitions:

Self-Control

Self-Control is the ability to manage one's emotions, desires, or actions, especially in difficult situations or to achieve long-term goals.

Assertive Leader

A leadership style characterized by confidence and decisiveness, without being aggressive.

Pushy

Describing someone who is overly assertive or forceful in their behavior or demands, often to the point of being annoying or intrusive.

Passive

Lacking in active response or involvement; accepting or allowing what happens without active response or resistance.