Multiple Choice Question

Collins, Inc. issued a nontaxable stock dividend of one share for each share owned. Melissa, a shareholder of Collins, had a total basis in her $500$ shares of stock of $$5,000.$ The total basis of Melissa's $1,000$ shares of stock after the dividend is Blank$\_\_\_\_\_\_.$

Multiple choice question.

$$10,000$

$$2,500$

$$5,000$