Accounting - Federal Taxation:

Doug Doolittle receives a nontaxable stock dividend of 20 shares of Edwards Corporation common stock with a fair market value at distribution of $800. Doug previously owned 100 shares of Edwards Corporation common stock which he purchased three years ago for $6,000. The basis per share of the 20 shares of Edwards Corporation stock is:

a. $0

b. $40

c. $50

d. $60