Wilton Corporation has a single class of common stock outstanding. Robert owns 100 shares, which he purchased in 2009 for $100,000. In 2015, when the stock is worth $1,200 per share, Wilton declares a 10% dividend payable in common stock. On December 10, 2015, Robert receives ten additional shares. On January 30, 2016, he sells five of the ten shares for $7,000.

How much income must Robert recognize when he receives the stock dividend?

How much gain or loss must Robert recognize when he sells the common stock?

What is Roberts basis in his remaining common shares? When does his holding period in the new common shares begin?