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Antoinette owns 400 shares of common stock of Gertz Incorporated which she acquired on May 28, 2015, for $43120. On April 14, 2020, Antoinette received
Antoinette owns 400 shares of common stock of Gertz Incorporated which she acquired on May 28, 2015, for $43120. On April 14, 2020, Antoinette received 40 shares of Gertzs common stock. The fair market value of the 40 shares on April 14, 2020, was $6272. Gertzs current E&P for 2020 was $30400. Assume that the stock dividend was disproportionate, determine the tax basis of the new 40 shares. [For your answer, please ignore the dollar sign and the comma.]
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