In 2017,Toni Purchased 100 Shares of Common Stock in Blue

question 67

Multiple Choice

In 2017,Toni purchased 100 shares of common stock in Blue Corporation for $5,280.In 2018,Blue declared a stock dividend of one share of its common stock for each 10 shares held.In 2019,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 of the earlier stock dividends 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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