Charise, single, received the following dividend income during the current year:

Dividend on Superior Growth Mutual Fund (100% capital gain distribution) $200

Dividend on life insurance policy held by Charise 300

Dividend on Illinois Electric stock (80% return of capital) 500

Dividend on GM stock (100% ordinary dividend) 350

Charise also received the following stock dividends:

From Hamilton Beach Corporation on April 1; all shareholders could either receive 20 shares of stock or $800 in cash. She chose to receive 20 shares of stock. The stock had a fair market value of:

On date of dividend $40 per share

On 12/31 $35 per share

From Fox Corporation on September 1; all shareholders could only receive shares of stock. Charise received 10 shares of stock. The stock had a fair market value of:

On date of dividend $20 per share

On 12/31 $22 per share

1. The amount of ordinary dividend income included in Charises AGI is:

a. $1,250.

b. $1,450.

c. $2,150.

d. $2,350.

e. none of the above.

2. Assuming Charise's ordinary dividend income is $3,000 (i.e., not your answer in 1 above), her final adjusted gross income is:

a. $3,000.

b. $3,200.

c. $3,300.

d. $3,600.

e. none of the above.

3. Prior to receiving the stock dividend from Hamilton Beach Corporation, Charise owned 100 shares of Hamilton Beach, for which she had paid $3,000 in total ($30 per share). Charises per-share basis in each of the additional 20 shares of Hamilton Beach stock she received on April 1 is:

a. $25 per share.

b. $30 per share.

c. $35 per share.

d. $40 per share.

e. none of the above.

4. Prior to receiving the stock dividend from Fox Corporation, Charise owned 40 shares of Fox, for which she had paid $450 in total ($11.25 per share). Charises per-share basis in each of the additional 10 shares of Fox stock she received on September 1 is:

a. $9 per share.

b. $11.25 per share.

c. $20 per share.

d. $22 per share.

e. none of the above.

5. Charises basis in her Illinois Electric stock before she received a dividend on it was $2,600. Charises total basis in the Illinois Electric stock after she received the dividend is:

a. $2,600.

b. $2,500.

c. $2,200.

d. $2,100.

e. none of the above.