a. In 2011, Kevin purchased 5,000 shares of Purple Corporation stock at $6 per share. In 2013, he receives a 5% preferred stock dividend. At the time of the stock dividend, the common stock of Purple Corporation has a fair market value of $9 and the preferred stock has a fair market value of $12 per share. Upon receipt of the preferred stock dividend: What is Kevins per share basis in the Purple Corporation stock? How much taxable income does Kevin recognize? b. In 2013, Rob received a residence as a gift from his mother, Joan. At the time of the gift, the residence had a fair market value of $1,200,000, and Joans basis in the residence was $500,000. Joan paid a tax of $40,000 on the gift. What is Robs basis in the residence? c. In 2013, Debbie receives stock as a gift from her uncle, Jerry. At the time of the gift, Jerrys adjusted basis in the stock is $27,000 and the fair market value of the stock is $17,000. One month later when the stock is worth $16,500, Debbie trades the stock for bonds with a fair market value of $15,000 and $1,500 cash (i.e. Debbie received a total value of $16,500 on the exchange, $15,000 in bonds and $1,500 in cash). What is Debbies recognized gain or loss from the exchange? What is Debbies basis in the bonds