Wonder Corporation Declared a Common Stock Dividend to All Shareholders

question 69

Multiple Choice

Wonder Corporation declared a common stock dividend to all shareholders of record on September 30, 20X3. Shareholders will receive three shares of Wonder stock for each five shares of stock they already own. Diana owns 300 shares of Wonder stock with a tax basis of $90 per share (a total basis of $27,000) . The fair market value of the Wonder stock was $180 per share on September 30, 20X3. What are the tax consequences of the stock dividend to Diana?

• A) $0 dividend income and a tax basis in the new stock of $180 per share
• B) $0 dividend income and a tax basis in the new stock of $67.50 per share
• C) $0 dividend income and a tax basis in the new stock of $56.25 per share
• D)$10,800 dividend and a tax basis in the new stock of $180 per share

Recognize the implications of technological advancements, like telematics, on employee privacy.

Distinguish between the privacy protections offered to individuals by the U.S. Constitution and federal laws.

Understand the balance between employer’s right to monitor for business purposes and employee’s privacy rights.

Discuss the ethical considerations related to employee monitoring, drug testing, and impairment testing strategies.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.