10. Tim has 100 shares of a corporation with a basis of $15,000 (common stock) and

value of $20,000. He receives a tax-free stock dividend of 50 additional shares of

common stock (value $10,000). What's his basis in the "new" 50 shares?

11. Bill has 100 shares of a corporation with a basis of $15,000 (common stock) a

value of $40,000. He receives a tax-free stock dividend of 50 additional shares of

preferred stock (value $10,000). What's his basis in the 50 new shares of preferred

stock?

12. Paula owns 100 shares in X Corp, which has a total of 400 shares outstanding, If she

has 30 of her shares redeemed, will the redemption qualify as a "sale" or be treated as a

dividend? Show your calculations, please.