$5$ years after its formation, Up the Hill Corporation wants to pay dividends to its shareholders Jack and Jill. On $1/1$ Year $6,$ it has accumulated E&P of $$100,000,$ and on $12/31$ it has current E&P of $$50,000,$ and they each own $500$ common shares. UTH distributes a stock dividend of $300$ common shares at end of year to Jack and to Jill. Jack and Jill each have a basis of $$10,000$ in their UTH stock.