Tom owns 100 shares of common stock of Grow Company, which he acquired in 20X1 for $22,000 ($220 per share). On March 1, 20X4, Grow Companys board of directors declared a proportionate 10% stock dividend to all common stock shareholders effective May 15, 20X4. Tom received 10 shares of common stock on May 15, 20X4 when the shares were trading at $300 per share. What is Toms dividend income and basis in the new shares?

Dividend Income: $0; Per share basis in 10 shares: $0

Dividend Income: $0; Per share basis in 10 shares: $200

Dividend Income: $3,000; Per share basis in 10 shares: $300

Dividend Income: $3,000; Per share basis in 10 shares: $227