QUESTION 1 Stuart owns 2,000 shares of Blue Corporation stock. During the year, Stuart received 100 shares of Blue Corporation stock as a result of a 5% stock dividend. Stuart did not have the option of receiving cash from Blue. The additional shares he received had a value of $7,200. Stuart's gross income from the receipt of the additional Blue shares is: O a $4,800 b. $12,000 OC $0 O d. $7,200 QUESTION 2 This year, John hires and pays an outside professional lobbying fimm $2,500 to lobby against proposed legislation that John believes may hurt his business. How much, if any, of the lobbying expense may John's business deduct in the current year? a $2,500 Ob the maximum de minimis limit of $2,000 C. 50 Od $1,250