Reggie owned stock in a corporation that has a dividend reinvestment plan. Reggie chose to participate in the plan and, during the year, the corporation paid dividends. The plan allowed Reggie to use the $3,000 dividend to buy 50 additional shares of stock at $60 per share when the fair market value of the stock was $72 per share. How much dividend income must Reggie report on his income tax return?
Reggie owned stock in a corporation that has a dividend reinvestment plan. Reggie chose to participate in the plan and, during the year, the corporation paid dividends. The plan allowed Reggie to use the $3,000 dividend to buy 50 additional shares of stock at $60 per share when the fair market value of the stock was $72 per share. How much dividend income must Reggie report on his income tax return?
Chapter22: S Corporations
Section: Chapter Questions
Problem 52P
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Transcribed Image Text:Reggie owned stock in a corporation that has a dividend reinvestment plan. Reggie chose to participate in the plan and, during the year, the corporation paid dividends. The
plan allowed Reggie to use the $3,000 dividend to buy 50 additional shares of stock at $60 per share when the fair market value of the stock was $72 per share. How much
dividend income must Reggie report on his income tax return?
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