Shrub Corporation has a single class of common stock outstanding. Tammy owns 1,000 shares, which she purchased five years ago for $150,000. Shrub declares a stock dividend payable in 8% preferred stock having a $80 par value. Each shareholder receives one share of preferred stock for ten shares of common stock. On the distribution date-January 2 of the current year-the common stock was worth $152 per share, and the preferred stock was worth $80 per share. On April 1 of the current year, Tammy sells half of her preferred stock for $8,000. Read the requirements. ... Requirement a. How much income must Tammy recognize when she receives the stock dividend? Tammy will recognize in income when she receives the stock dividend. Requirement b. How much gain or loss must Tammy recognize when she sells the preferred stock? (Ignore the implications of Sec. 306.) (Do not round intermediary calculations. Only round the amount you input in the cells to the nearest cent. Use parentheses or a minus sign for a loss.) Amount recognized Requirement c. What is Tammy's basis in her remaining common and preferred shares after the sale? When does her holding period for the preferred shares begin? (Do not round interim calculations and round your final answer to the nearest cent.) Tammy's common share basis is |and her remaining preferred share basis is Her holding period for the preferred shares begins on April 1 of the current year. begins on January 2 of the current year. includes the five-year holding period of the common stock. Next