Kevin Buys One Share of Mink, Inc

question 32

Multiple Choice

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:
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Common Preferred

• A)$50.00 $50.00
• B)$100.00 $- 0 -
• C)$83.33 $16.67
• D)$250.00 $50.00
• E)$80.00 $20.00

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Definitions:

Self-Defense

The act of defending oneself, one's property, or close associates from physical harm or danger using reasonable force.

Deontology

An ethical theory that suggests actions should be judged moral or immoral based on rules, regardless of the outcomes those actions produce.

Framework For Ethics

A set of principles designed to guide the decision-making process by establishing standards of right and wrong.

Ethical Issue

A dilemma or situation that requires a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).