David drew owned two shares of abc corporation common stock

Reference no: EM13483447

David Drew owned two shares of ABC Corporation common stock. He paid $60 for one share on January 15, 2008 and $30 for one share on March 31, 2006. The corporation declared a stock dividend which gave stockholders two 2 new shares of common stock for each share owned. After the distributions of the shares to the shareholder, how many shares are owned by David and what is the adjusted basis of each share? A) 6 shares owned; 3 shares with $20/cost basis and 3 shares with $40/cost basis B) 6 shares owned: 4 shares with $0/cost basis and 1 share with $30/cost basis and 1 share with $60/cost basis. C) 6 shares owned: 3 shares with $30/cost basis each and 3 shares with $10/cost basis each. D) 6 shares owned: 2 shares with $45/cost basis each and 4 shares with $0/cost basis each.

Reference no: EM13483447

Questions Cloud

Sales for october november and december are expected to be : sales for october november and december are expected to be 200000 180000 and 220000 respectively for the gurumai

The final processing department in carols production : the final processing department in carols production facility began the year with no work in process inventories.

Frisch fish corp expects net income next year to be 599000 : frisch fish corp expects net income next year to be 599000. inventory and accounts receivable will have to be increased

Near the end of 2013 fairview construction company asked : preston concrete is a major supplier of concrete to residential and commercial builders in the pacific northwest. the

David drew owned two shares of abc corporation common stock : david drew owned two shares of abc corporation common stock. he paid 60 for one share on january 15 2008 and 30 for one

Capital budgeting emphasizes the key role management has : capital budgeting emphasizes the key role management has in value creation by taking projects and expanding the size of

Assuming their workers work a typical 40 hours work week : roman and clive have a plan to manufacture barbeque grills. they are writing their business plan for roman amp clive

Your friend is considering buying a patio heater for her : your friend is considering buying a patio heater for her pub. she thinks that she can extend her patio season by

Texas does not anticipate keeping any of the heifers for : texas had a herd of cattle including heifers and steers that have not yet been weaned. texas does not anticipate

User Account

All Pages