David drew owned two shares of abc corporation common stock

Assignment Help Accounting Basics

Reference no: EM13569850

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: EM13569850

Questions Cloud

Suppose the firm moves from a high-wage to a low-wage : a firm can use three different production technologies with capital and labor requirements at each level of out as

Learning objectives obj 2 please prepare a statement of : learning objectives obj. 2 please prepare a statement of cash flows using the indirect method. statement of cash

Jean jackson estimated that the units in ending inventory : 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

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

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

Problem 2 below is information from job card 506 for the : problem 2 below is information from job card 506 for the bearing manufacturing company. date started june 15 2015 date

Eddies had a cash balance of 2000 on march 1 which is also : eddies bar and restaurant supplies expects its revenues and expenses for the first 5 months of the year to besales

Take the following accounts and place them in the : 1. take the following accounts and place them in the appropriate financial statement as well as appropriate category

User Account

All Pages