Virginia gave her 14 year old grandson, Tommy, $10,000 in common stock One month later, Tommy receives a $100 dividend on the stock How much income is taxed to Tommy and how much to Virginia ...

Tommy will recognize the 100 ...

Virginia gave her 14-year-old grandson, Tommy, $10,000 in common stock. One month later, Tommy receives a $100

Question:

Virginia gave her 14-year-old grandson, Tommy, $10,000 in common stock. One month later, Tommy receives a $100 on the stock. How much income is taxed to Tommy and how much to Virginia?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...