At the Beginning of the Year,Ms

question 62

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 the above statements is true.

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Definitions:

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, including coronary artery disease, heart failure, and stroke.

Low-fiber Diet

A diet lacking in dietary fiber, which can lead to digestive issues and other health problems.

Atherosclerosis

A condition where arteries become narrowed and hardened due to a buildup of plaque around the artery wall, which can lead to cardiovascular diseases.

Emphysema

A chronic lung condition characterized by damage to the air sacs (alveoli), leading to breathlessness.