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NEW QUESTION: 1
Greller owns 100 shares of Arden Corp., a publicly-traded company, which Greller purchased on January
1 , 2001, for $10,000. On January 1, 2003, Arden declared a 2-for-1 stock split when the fair market value
(FMV) of the stock was $120 per share. Immediately following the split, the FMV of Arden stock was $62
per share. On February 1, 2003, Greller had his broker specifically sell the 100 shares of Arden stock
received in the split when the FMV of the stock was $65 per share. What is the basis of the 100 shares of
Arden sold?
A. $6,500
B. $6,000
C. $6,200
D. $5,000
Answer: D
Explanation:
Explanation
Choice "a" is correct. The receipt of a nontaxable stock dividend will require the shareholder to spread the
basis of his original share over both the original shares and the new shares received resulting in the same
total basis, but a lower basis per share of stock held. Therefore, Greller total basis remains the same,
$ 10,000, but is now split between 200 shares (a 2-for-1 split and he originally owned 100 shares).
Therefore, his basis per share goes from $100/share ($10,000/100) to $50/share ($10,000/200).
Consequently, his basis in 100 share is 100 x $50 = $5,000.
Choices "b", "c", and "d" are incorrect per the above explanation.

NEW QUESTION: 2
Drag and drop the adverse network conditions from the left on the correct descriptions on the right

Answer:
Explanation:

NEW QUESTION: 3
Which two keywords are required for creating an SQL procedure? (Choose two)
A. WHEN
B. START
C. END
D. DECLARE
E. BEGIN
Answer: C,E