Heather owns 400 shares of Diego Corporation common stock for which she paid $4,000. She recieves a nontaxable stock dividend of 20 shares of preferred stock on her common stock. The fair market values on the date of distribution of the preferred stock dividend are $20 a share for common stock and $100 a share for preferred stock. Heather's basis for the common stock is $_______ and $_______ for the preferred stock.

Tax Drill - Stock Dividends Heather owns 400 shares of Diego Corporation common stock for which she paid $4,000. She receives a nontaxable stock dividend of 20 shares of preferred stock on her common stock. The fair market values on the date of distribution of the preferred stock dividend are $20 a share for common stock and $100 a share for preferred stock. What is Heather's basis in the common and preferred shares? Heather's basis for the common stock is $ and for the preferred stock