On January 5, 2019, Henry purchases 500 shares of Wichmann, Inc., common stock at a cost of $25,350. On April 1, 2019, he purchases an additional 300 shares for $19,890. On November 13, 2019, Wichmann, Inc., declares and distributes a 30% stock dividend. On December 23, 2019, Wichmann distributes a cash dividend of 30 cents per share. On February 19, 2020, Henry sells 800 shares of the Wichmann, Inc., stock for $46 per share. Note: All sales should be considered on a FIFO basis using a strict date approach. a. The shares are assumed to be sold on a first-in, first-out basis using a strict date approach (the 800 shares sold are from the 500 shares purchased on January 5, 2019, and 300 shares purchased on April 1, 2019). In 2019, Henry recognizes dividend income of $ 50,388 and in 2020, he recognizes a capital gain of $ 2,000 on his Wichmann, Inc. stock. b. To improve the tax results in 2020, Henry should do the following: 390 Henry should identify the 410 shares with $ shares with the $ 51 higher basis and lower basis per share to realize a gain on the sale of 39