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

Exercise 14

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.