In a distribution that qualifies as a stock dividend, which of the following statements most accurately describes how a shareholder determines the basis of the new stock? A. Basis is allocated pro rata based on the fair market value of the old stock and the new stock, B. Basis is allocated pro rata based on the cost of the old stock and the new stock, C. No basis is attributed to the new stock, D. None of the above describes now a shareholder determines the basis of the new stock.