Question
You owned 100 shares of stock in BigCo, Inc., when it did a tax-free stock split (or stock dividend, as your textbook authors insist on
You owned 100 shares of stock in BigCo, Inc., when it did a tax-free stock split (or stock dividend, as your textbook authors insist on calling it). Now you have 200 shares!
You had paid $50 per share when you bought your original 100 shares. After the stock split, what is your tax basis in
- your original 100 shares?
- your new 100 shares?
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College Accounting Chapters 1-13
Authors: John Price, M. David Haddock, Michael Farina
15th Edition
125999516X, 9781259995163
