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On March 31, 2018, Mary Jones purchased 1,000 shares of XYZ common stock for $12,000. On September 30, 2018 she receives a 20% nontaxable common

On March 31, 2018, Mary Jones purchased 1,000 shares of XYZ common stock for $12,000. On September 30, 2018 she receives a 20% nontaxable common stock dividend. On June 30, 2019, the new dividend shares are sold for $30. per share. Determine the tax treatment for the receipt and sale of the stock dividend.

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