Required information Problem 5-41 (LO 5-1) (Algo) [The following information applies to the questions displayed below.] XYZ declared a $1 per share dividend on August 15. The date of record for the dividend was September 1 (the stock began selling ex-dividend on September 2). The dividend was paid on September 10. Ellis is a cash-method taxpayer. Determine if he must include the dividends in gross income under the following independent circumstances. Problem 5-41 Part-a (Algo) allis bought 120 shares of XYZ stock on August 1 for $25 per share. Ellis received a $120 dividend on September 10 . Ellis still owns he shares at year-end. b. Ellis bought 120 shares of XYZ stock on August 1 for $25 per share. Ellis sold his XYZ shares on September 5 for $27 per share. Ellis received the $120 dividend on September 10 (note that even though Ellis didn't own the stock on September 10 , he still received the dividend because he was the shareholder on the record date). c. Ellis bought 120 shares of XYZ stock for $26 per share on August 20 . Ellis received the $120 dividend on September 10 . Ellis still owns the shares at year-end