February 17, 2022 Jacob Corcoran 925 Arapahoe Street Boulder, CO 80304 Dear Mr. Corcoran: This letter is in response to your question about the sale of the Grebe Corporation stock that you received as a nontaxable stock dividend. Our conclusion is based upon the facts as outlined in your February 10th letter. Any change in facts may cause our conclusion to be inaccurate. Originally, you paid $24,000 for 10,000 shares of stock in Grebe Corporation, and last year a nontaxable stock dividend of 2,000 on the sale of the additional shares was received. The 2,000 shares were sold in the current year for $18,000. The gain your basis in the shares sold from the sales price. The tax basis in the 2,000 shares 2,000 shares is determined by adding 14,000 on the sale is considered a long-term capital gain than one year. is $ per share. Your gain of because the original Grebe stock has been held for more Should you need more information or need clarification on our conclusion, do not hesitate to contact me. Sincerely yours, Heywood R. Floyd, CPA