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Whitehall Corporation has a single class of common stock outstanding. Mick owns 2 0 0 shares, which he purchased six years ago for $ 1
Whitehall Corporation has a single class of common stock outstanding. Mick owns shares, which he purchased six years ago for $ In the current year, when the stock is worth $ per share. Whitehall declares a dividend payable in common stock. On December of the current year, Mick receives ten additional shares. On January of the subsequent year, he sells seven of the ten shares for $
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Requirement a How much income must Mick recognize when he receives the stock dividend?
Income Mick will recognize when he receives the stock dividend
Requirement b How much gain or loss must Mick recognize when he sells the common stock? Do not round intermediary calculations. Only round your final answer to the nearest cent. Use parentheses or a minus sign for a loss.
Amount recognized
Requirement c What is Mick's basis in his remaining common shares? When does his holding period in the new common shares begin? Do not round intermediary calculations. Only round the final answer to the nearest cent.
Mick's remaining common share basis
Mick's holding period in the new common shares
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