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Joe bought 1,000 shares of common stock two years ago for $10,000. In the current tax year, Joe receives a nontaxable preferred stock dividend of

Joe bought 1,000 shares of common stock two years ago for $10,000. In the current tax year, Joe receives a nontaxable preferred stock dividend of 100 shares. The preferred stock has a fair market value of $1,000 and the common stock, on which the preferred is a distributed, has a fair market value of $19,000.


Determine Joe's basis in common and preferred stock.

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