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Suleman purchased 100 shares of Green Corporation for $1,200. During the current year, Green declared a nontaxable 5% stock dividend. What is the basis per
Suleman purchased 100 shares of Green Corporation for $1,200. During the current year, Green declared a nontaxable 5% stock dividend. What is the basis per share before and after the stock dividend is distributed (rounded)? (LABEL AND SHOW ALL WORK WITH CALCULATIONS)
A)
Before | After |
$12 | $11.43 |
B)
Before | After |
$12 | $12 |
C)
Before | After |
$11 | $12 |
D)
Before | After |
$11.43 | $12 |
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