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 13

Devon owns 1,000 shares of stock worth $10,000.This year he received 200 additional shares of this stock from a stock dividend.His 1,200 shares are now worth $12,500.Must Devon include the dividend paid in stock in income?