Ken purchased 10,000 shares of Gold Corporation common stock six years ago for $160,000. In the current year, Ken received a preferred stock dividend of 800 shares, while the other holders of common stock received a common stock dividend. The preferred stock Ken received has a fair market value of $80,000, and his common stock has a fair market value of $240,000. Assume that Gold has ample E & P to cover any distributions made during the year.

The distribution of preferred stock is taxable to Ken, and his basis in the newly acquired shares is $_____________. The holding period of the preferred stock begins on the date of receipt.