Gina Owns 100 Shares of XYZ Common Stock with a $12,000

question 49

Essay

Gina owns 100 shares of XYZ common stock with a $12,000 basis and a $25,000 FMV.She receives 100 stock rights with a total FMV of $15,000.Answer the following:
a.What is the basis of the 100 shares of stock?
b.What is the basis of the 100 stock rights?

---

Definitions:

Overt Behaviour

Observable actions or responses of an individual, as opposed to thoughts or feelings which are internal.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology.

Mental Testing

The practice of administering tests to evaluate cognitive, emotional, and psychological functions and abilities.

Functionalists

Scholars within the field of sociology and psychology who study how societal institutions contribute to social stability and the fulfillment of individual roles.