Taxpayer owns 200 shares of common stock of Corp. A with a combined basis of $120,000. Assume that the taxpayer receives a nontaxable stock dividend of 30 shares of Corp. A preferred stock. On the date of the dividend distribution, the market value of the common stock is $750 per share and the market value of the preferred stock is $1,000 per share. What will be the new basis (per share) of the common stock?

Options

750 500 1,000 670 None of the above