Katie owns 100 shares of Beaumont Corporation common stock which was purchased on March 20,2008, for $30,000. On September 11 of the current year, she receives a distribution of 100 stock rights. Each stock right has a $15 fair market value (FMV) and the FMV of the Beaumont common stock is $60 per share. With each stock right, she may acquire one share of Beaumont common stock for $120. Read the requirements. Requirement a. How much gross income must Katie recognize? (Enter a " 0 " for a zero amount). Katie must recognize of gross income. Requirement b. What is the basis of each stock right received? (Do not round intermediary caiculations. 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 Katie owns 100 shares of Beaumont Corporation common stock which was purchased on March 20, 2008, for $30,000. On Septernber 11 of the current year, she recelves a distribution of 100 stock rights. Each stock right has a $15 fair market value (FMV) and the FMV of the Beaumont common stock is $60 per share. With each stock right, she may acquire one share of Beaumont common stock for $120. Requirement d. If she exercises the 100 stock rights on October 11 , what is the bosis of the 100 shares she receives and when does the holding period for those. shares start? The basis of the 100 shares she receives is The holding period should start on Katie owns 100 shares of Beaumont Corporation common stock which was purchased on March 20,2008, for $30,000.0. September 11 of the current year, she receives a distribution of 100 stock rights. Each stock right has a \$15 fair market value (FMV) and the FMV of the Beaumont common stock is \$60 per share. With each stock right, she may acquire one share of Beaumont common stock for $120. Read the reguifements. Requirement c. If she sells the 100 stock rights for $8,500, what is her gain? (Use parentheses or a minus sign to ahow a loss) Requirement d. If she exercises the 100 stock rights on October 11 , what is the basis of the 100 shares she receives and when does the holding period for those shares start? Katie owns 100 shares of Beaumont Corporation common slock which was purchased on March 20,2008, for $30,000. On Seplember 11 of the current year, she receives a distribution of 100 stock rights. Each stock right has a $15 fair market value (FMV) and the FMV of the Beaumont cornmon stock is $60 per share. With eact stock right, she may acquire one share of Beaumont common stock for $120. First, calculate the total basis, we will calculate the basis of each stock in the next step. The basis of each stock right received is Requirement c. If she sells the 100 stock rights for $8,500, what is her gain? (Use parentheses or a minus sign to show a loss.) Stock rights Katie owns 100 shares of Beaumont Corporation common stock which was purchased on March 20,2008, for $30,000. On September 11 of the current year, she receives a distribution of 100 stock rights. Each stock right has a $15 fair market value (FMV) and the FMV of the Beaumont common stock is $60 per share. With each stock right, she may acquire one share of Beaumom common stock for $120. Read the requirements. Requirement a. How much gross income must Katie recognize? (Enter a " O " for a zero amount.) Katie must recognize of gross income. Requirement b. What is the basis of each stock night 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
