Please select the best answer for each of the following questions. Unless otherwise stated, the questions relate to the current tax year.

Question 20 3.34 pts All shareholders of ACME corporation receive a 50% stock dividend. Prior to the dividend, Dan owned 100 shares of stock (representing 10% ownership of the corporation). Dan received 50 additional shares which have a fair market value of $1,000. After the stock dividend, Dan owned 150 stock shares (representing 10% ownership of the corporation). How much taxable income does Dan recognize from the stock dividend? $0 $1,000 None of the other answers are correct. O $500