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Penny owned 2,000 shares of Dollar Inc. common stock that were purchased in Year 1 at $10.50 per share. Penny received a 5% non-taxable dividend

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Penny owned 2,000 shares of Dollar Inc. common stock that were purchased in Year 1 at $10.50 per share. Penny received a 5% non-taxable dividend of Dollar common stock in Year 2. In Year 5, the stock split 2 for 1. In the current year Penny sold 800 shares. What is Penny s basis in the 800 shares sold? $4,000 $8,000 $8,400 $16,800 $21,000

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