LO8 On September 5 of last year, Edwina purchases 100 shares of Atlantis Corporation common stock for $5,000. In December of the current year, she receives a nontaxable stock dividend of 10 shares of preferred stock from Atlantis. At the date of the dividend, the fair market value of the preferred stock is $20 per share, and the fair market value of the common stock is $30 per share. What is the basis of the preferred and common shares owned by Edwina?

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