El Toro Corporation declared a common stock distribution to all shareholders of record on June 30, year 1. Shareholders will receive 1 share of El Toro stock for each 2 shares of stock they already own. Raoul owns 340 shares of El Toro stock with a tax basis of $72 per share. The fair market value of the El Toro stock was $140 per share on June 30, year 1. What are the tax consequences of the stock distribution to Raoul?