Sampson owns 100 shares of ABC common stock purchased at a cost of $35 per...
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Accounting
Sampson owns 100 shares of ABC common stock purchased at a cost of $35 per share. He received an additional 50 shares of common stock worth $1,250 as a proportionate stock dividend. What are the tax implications for Sampson?
a.
Sampson has taxable dividend income of $1,250
b.
Sampson has taxable dividend income of $1,000
c.
Sampson has a stock basis in all shares of $4,750
d.
Sampson has a stock basis in all shares of $3,500
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