Stock Dividend Distribution. Moss Corporation has a single class of common stock out standing. Tillie owns 1,000 shares, which she purchased in 2011 for dollar 100,000. More declares a stock dividend payable in 8 percentage preferred stock having a dollar 100 par value. Each shareholder receives one share of preferred stock for ten shares of common stock. On the distribution date-December 10, 2015-the common stock was worth dollar 180 per share, and the preferred stock was dollar per share. On April 1, 2015, Tillie sells half of her preferred stock dollar 5,000. How much income must Tillie recognize when she receives the stock dividend? How much gain or loss must Tillie recognize when she sells the preferred stock? (Ignore the implications of Sec.306.) What is Tillie's basis in her remaining common and preferred shares after the sale? When does her holding period for the preferred shares begin