Taxpayer basis for the acquired stock

Reference no: EM13150496

Jenny received nontaxable stock rights on June 9, 2009. She allocated $3,800 of the $20,000 basis for the associated stock to the stock rights. The stock rights are exercised on October 12, 2009. The exercise price for the stock is $11,000. What is the taxpayer's basis for the acquired stock?

a. $0.

b. $7,200.

c. $11,000.

d. $14,800.

e. None of the above.

Reference no: EM13150496

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