At the beginning of the year, Mr. Olsen paid $15 per share for 780 shares of Carmel common stock. He received cash distributions totaling $1,220. His Form 1099 reported that $860 was a qualifieddividend and $360 was a nontaxable distribution. Compute his basis in his 780 shares at year-end.

At the beginning of the year, Mr. Olsen paid $15 per share for 780 shares of Carmel common stock. He received cash distributions totaling $1,220. His Form 1099 reported that $860 was a qualified dividend and $360 was a nontaxable distribution. Compute his basis in his 780 shares at yearend. $ 8,940