In 2015,Toni Purchased 100 Shares of Common Stock in Blue

question 123

Multiple Choice

In 2015,Toni purchased 100 shares of common stock in Blue Corporation for $5,280.In 2016,Blue declared a stock dividend of one share of its common stock for each 10 shares held.In 2017,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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Definitions:

Collective Unconscious

A concept developed by Carl Jung referring to the part of the unconscious mind which is derived from ancestral memory and experience, shared among all humans.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for his concepts of the collective unconscious and archetypes.

Real Self

An individual's authentic and true personality or identity, as opposed to roles or masks worn in different social contexts.

Rogers

Refers to Carl Rogers, an influential American psychologist who founded the humanistic approach to psychology.