Kathryn owns 500 shares of Baltimore Corporation common stock which was purchased on March 20, 2000, for S100,000. On August 8 of the current year, she receives a distribution of 500 stock rights. Each stock right has a $10 FMV and the FMV of the Baltimore common stock is $40 per share. With each stock right, she may acquire one share of Baltimore common stock for $100. Read the Requirement a. How much gross income must Kathryn recognize? (Enter a "O" for a zero amount.) Kathryn must recognize of gross income. Requirement b. What is the basis of each stock right received? (Do not round intermediary calculations. Only round the amounts you input in the cells to the nearest dollar. Enter amounts as totals, not amounts per share.) First, calculate the total basis, we will calculate the basis of each stock in the next step. Basis of rights The basis of each stock right received is $ Requirement c. If she sells the 500 stock rights for $23,200, what is her gain? (Use parentheses or a minus sign to show a loss.) Stock rights Requirement c. If she sells the 500 stock rights for $23,200, what is her gain? (Use parentheses or a minus sign to show a loss.) Stock rights Less: Realized gain (loss) Requirement d. If she exercises the 500 stock rights on September 8, what is the basis of the 500 shares she receives and when does the holding period for those shares start? The basis of the 500 shares she receives is The holding period should start on Choose from any list or enter any number in the input fields and then continue to the next