On June 1, Publicly Held Corporations common stock is selling for $15 per share. On that date, Publicly Held declares a dividend of $1 per share, payable on June 12 to shareholders of record as of June 8. Investor Corporation purchases 1,000 shares of Publicly Held common stock for $15,000 on June 3 (2 days before the June 5 ex-dividend date), collects a $1,000 dividend on June 12 and sells the stock for $14,000 on June 15.

(a) What are the tax consequences to Investor Corporation?

(b) What result in (a), above, if Investor sold the stock on December 1 instead of June 15?

(c) What result in (b), above, if Publicly Held had paid a second $1 per share dividend on August 15, and the ex-dividend date was August 5?

(d) What result in (c), above, if the August dividend is $2 per share but Investor holds the Publicly Held stock for 25 months before selling it?

(e) What result if Investor purchased the Publicly Held stock by borrowing $15,000, secured by the stock, and Investor paid $1,200 interest during the year and received $1,000 of dividends?

(f) What result in (e), above, if Investor had borrowed only $7,500 of the $15,000 used to buy the stock and paid $600 interest during the year?