McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 57

Jim purchased 100 shares of stock this year and elected to participate in a dividend reinvestment program.This program automatically uses dividends to purchase additional shares of stock.This year Jim's shares paid $350 of dividends and he used these funds to purchase shares of stock.These additional shares are worth $375 at year-end.What amount of dividends, if any, should Jim declare as income this year? Explain.