1. Dany owns 1000 shares of Sports Corp. stock purchased in January 2016 for $30,000. On January 11, 2018, she receives 300 taxable stock rights valued at $6 with the right to purchase additional shares at $32.
   1. How much income does Dany have? What is the basis in the rights? When does the holding period of the rights begin?
   2. On February 19, 2019, Dany exercises 150 rights and sells the remaining 150 rights for $8 each. What is the basis of each new share? When does the holding period begin? How much and what kind of gain does she have on the sale of the rights?