66. On September 5 of last year, Edwina purchases100 shares of Atlantis Corporation common stock for $5000. In Dec of the current year, she receives a nontaxable stock dividend of 10 shares of preferred sock 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?

67. Clarece has the option of receiving 2 shares of common stock as a stock dividend on the 10 shares of Ramble Company common stock that she owns. She paid $30 per share for her 10 shares. The common stock is now selling for $20 per share. In lieu of receiving the 2 shares, Clarece may elect to receive $40 in cash. Write a memo explaining the tax consequences of Clarece's options.

69. On Nov 14, 2016 Noel sells 2000 shares of Market, Inc, stock for $6000. He had purchased the stock two years earier for $10000. Because the price of the stock continued to drop, Noel purchased additional shares of Marker stock on Dec 10, 2016. What are the effects of the sale of the stock and the basis in the new shares if Noel

a) Repurchases 2000 shares for $5000?

b) Repurchases 800 shares for $2000?

c) Repurchases 4000 shares for $9000?

70. Lynn bought 100 shares of Filidelphia Corporation stock for $10000 three years ago. On Dec 24, she sells 50 shares for $4000. She plans to buy 100 more shares of Filidelphia stock for $7000 on Jan 17. Explain the tax treatment of these transactions. Include a discussion of the underlying concepts that govern the results. What could Lynn do to change the results?