9. Ronald Rankin owns 1,000 shares of Royal Corp, common stock with a basis of $30,000. He receives a 10 percent taxable common stock dividend when the FMV of each share of stock is $15.

1. ) How much income does he have?
2. ) What is the basis in the new shares?
3. ) When does the holding period of the new shares begin?
4. ) What is the basis in the old stock?