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Business, 30.07.2021 01:20 justnbri

Wonder Corporation declared a common stock dividend to all shareholders of record on September 30, 2013. Shareholders will receive 3 shares of Wonder stock for each 5 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 hte Wonder stock was $180.00 per share on September30, 2013. What are the tax consequences of the stock dividend to Diana?
A. $0 dividend income and a tax basis in the new stock of $180.00 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 $180.00 per share

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