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Lilah owns 400 shares and Juliet owns 300 shares of Inc (LJU) stock Lila's basis in her shares is $4.000 ($10 per share.) Juliet's basis

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Lilah owns 400 shares and Juliet owns 300 shares of Inc (LJU) stock Lila's basis in her shares is $4.000 ($10 per share.) Juliet's basis in her shares is $9,000 ($15 per share.) On July 1,2018 Li pays a 15% stock dividend to Lith and Juliet Lilah receiven 60 shares and Juliet receives 90 shares. Each of these shares is worth $25. ja 51.000.000 of E&P What amount of dividend income does Lilah report on her 2019 tax retum and what is har total tax basis tax batis in her 460 shares of UJI? O A Lilah reports $1500 of dividend income and has a tax basis of $5500 in her shares OB Lilah reports $1500 of dividend income and has a tax basis of 54000 in her shares OC Lilah reports no dividend income and has a tax basis of $5500 in her shares OD. Lihreports no dividend income and has a tax basis of $4000 in her shares

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