Kelsey owns $200$ shares of Baltimore Corporation common stock which was purchased on March $20,2010,$ for $$35,000.$ On August $15$ of the current year, she receives a distribution of $200$ stock

rights. Each stock right has a $$15$ fair market value $($FMV$)$ and the FMV of the Baltimore common stock is $$90$ per share. With each stock right, she may acquire one share of Baltimore common

stock for $$110.$

Read the requirements.

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First, calculate the total basis. We will calculate the basis of each stock in the next step. Identify the formula needed to compute the basis of rights in the "Formula" column, and then enter the

basis of rights amount in the "Amount" column.

Formula

Amount

Basis of rights

The basis of each stock right received $=$

Requirement $c.$ If she sells the $200$ stock rights for $$8,200,$ what is her gain? $($Use parentheses or a minus sign to show a loss.$)$

Stock rights

Realized gain $($loss$)$

Requirement $d.$ If she exercises the $200$ stock rights on September $15,$ what is the basis of the $200$ shares she receives and when does the holding period for those shares start?

The basis of the $200$ shares she receives $=$

The holding period should start on