Badger Corporation declared a stock dividend to all shareholders of record on March 25 of this year. Shareholders will receive one share of Badger stock for each 10 shares of stock they already own. Madison Cheeseman owns 1,000 shares of Badger stock with a tax basis of $100 per share. The fair market value of the Badger stock was $110 per share on March 25 of this year. a. What amount of taxable dividend income, if any, does Madison recognize this year? Answer = $0 b. What is Madisons income tax basis in her new and existing stock in Badger Corporation, assuming the distribution is non-taxable? Answer = $91 c. How would you answer parts (a) and (b) if Madison was offered the choice between one share of stock in Badger for each 10 shares she owned or $100 cash for each 10 shares she owned in Badger, if she chooses the stock? Answer = ???