At the Beginning of the Year, Ms

question 56

Multiple Choice

At the beginning of the year, Ms. Faro paid $15,000 for 750 shares of Gravois stock. She instructed her broker to reinvest any dividends in additional Gravois shares. Her Form 1099-DIV reported that she earned $820 dividend income which purchased 39 additional shares. Which of the following statements is true?

• A) Ms. Faro recognizes no dividend income and has a $15,000 basis in her 789 shares.
• B) Ms. Faro recognizes no dividend income and has a $15,820 basis in her 789 shares.
• C) Ms. Faro recognizes $820 dividend income and has a $15,820 basis in her 789 shares.
• D) None of these statements are true.

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Definitions:

Racism

Bias, unfair treatment, or hostility towards individuals of another race, stemming from the conviction that one's own race is superior.

Classroom

A room within a school or educational institution where teaching and learning activities occur.

Cultural Capital

Non-financial social assets that promote social mobility, including education, intellect, style of speech, and appearance.

Social Finesse

The skillful and sensitive handling of social interactions and relationships.