Jacob Corcoran bought 10,000 shares of Grebe Corporation stock two years ago for $24,000. Last year, Jacob received a nontaxable stock dividend of 2,000 shares in Grebe Corporation. In the current tax year, Jacob sold all of the stock received as a dividend for $18,000. a. Complete the letter to Jacob describing the tax consequences of the stock sale. SWFT, LLP 5191 Natorp Boulevard Mason, OH 45040 February 17, 2022 Jacob Corcoran 925 Arapahoe Street Boulder, CO80304 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 10 h letter. Any change in facts may cause our conclusion to be inaccurate. Originally, you poid $24,000 for 10,000 shares of stock in Grebe Corporation, and last year a nontaxable stock dividend of 2,000 additional shares was received. The 2,000 shares were sold in the current year for $18,000. The on the sale of the 2,000 shares is determined by Your basis in the shares sold from the sales price. The tax basis in the 2,000 shares is \$ per share. Your of 5 on the sale is considered because the original Grebe stock has been held for than one year. Should you need more information or need clarification an our conciusion, do not hesitate to contact me. Sincerely yours