Whitley had previously elected to have all of her dividends reinvested. She received a Form 1099-DIV reporting $50 in dividends for 2018. Whitley's reinvested dividends are __________.

Not taxable until the stock is sold.

Not taxable in 2018, but they increase her basis in the stock.

Taxable income in 2018, but do not affect her basis in the stock.

Taxable income in 2018 and increase her basis in the stock