In 2016, Toni Purchased 100 Shares of Common Stock in Blue

question 1730

Multiple Choice

In 2016, Toni purchased 100 shares of common stock in Blue Corporation for $5,280. In 2017, Blue declared a stock dividend of one share of its common stock for each 10 shares held. In 2018, 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) $80 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) $24 per share

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Definitions:

Chronological Resumé

A resume format that lists work experience and education in reverse chronological order, starting with the most recent.

Academic Qualifications

certifications or degrees earned from educational institutions that demonstrate a level of expertise or knowledge in a particular area.

Work Experience

The history of jobs and roles an individual has held, including responsibilities and achievements in each position.

Relevant Work Experience

Professional experience that is directly related to the job one is applying for, indicating suitability and competence.