38. With regard to stock dividends, all of the following statements are correct except: Stock dividends are distributions made by a corporation of its own stock. In computing basis for new stock received as a result of a non-taxable div immaterial whether the stock received is identical or not to the old stock. C. If a stock dividend is taxable, the basis of the old stock does not change. If a stock dividend is not taxable, a division must be made in the basis between new stock