14. Stock Dividends. (Obj. 1) In 1999, Patrick paid $1,200 for 100 shares of UPI common stock. In the current year, ÚPI offers Patrick the choice between a $50 cash dividend or 8 additional shares of common stock valued at $9 a share. Patrick opts for the stock dividend. podods bloss a. What is Patrick's basis in each of the 108 shares he now owns? joday ibon the sit b. How would your answer to Part a. change if Patrick did not have the option of a cash dividend?
14. Stock Dividends. (Obj. 1) In 1999, Patrick paid $1,200 for 100 shares of UPI common stock. In the current year, ÚPI offers Patrick the choice between a $50 cash dividend or 8 additional shares of common stock valued at $9 a share. Patrick opts for the stock dividend. podods bloss a. What is Patrick's basis in each of the 108 shares he now owns? joday ibon the sit b. How would your answer to Part a. change if Patrick did not have the option of a cash dividend?
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 2BCRQ
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ISBN:
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Author:
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CENGAGE LEARNING - CONSIGNMENT