Kevin Buys One Share of Mink,Inc

question 10

Short Answer

Kevin buys one share of Mink,Inc.,common stock for $100.On February 3 of the current year,the corporation makes a nontaxable distribution of one share of preferred stock to all holders of record of common stock.On the distribution date,the common stock is trading at $250 and the preferred stock is trading at $50.After the distribution,Kevin's bases in the two shares of stock are:
$\begin{array}{lr}&\text { Common } & \text { Freferred } \\\text { a. } &\$ 50.00 & \$ 50.00 \\\text { b. }& \$ 100.00 & \$-0- \\\text { c. } &\$ 83.33 & \$ 16.67 \\\text { d. } &\$ 250.00 & \$ 50.00 \\\text { e. } &\$ 80.00 & \$ 20.00\end{array}$

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Definitions:

Average Number

A value found by summing all numbers in a set and then dividing by the count of those numbers, representing a central or typical value in the set.

Maintenance Crew

A team responsible for keeping buildings, machinery, or equipment in working order through routine maintenance and repair.

Rate of Return

A rise or fall in an investment's worth over a certain period, denoted as a fraction of the investment's beginning cost.

Overall Rate

The aggregate or average rate across different instances or cases, considering all relevant factors or components.