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Penny owned 2,000 shares of Dollar Inc. common stock that were purchased in Year 1...

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Question

Accounting

Penny owned 2,000 shares of Dollar Inc. common stock that were purchased in Year 1 at $10.50 per share. Penny received a 5% non-taxable dividend of Dollar common stock in Year 2. In the current year Penny sold 800 shares. What is Penny s basis in the 800 shares sold?
Group of answer choices
$8,400
$4,000
$21,000
$16,800
$8,000

Answer & Explanation Solved by verified expert
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