Kevin Buys One Share of Mink,Inc

Short Answer

Kevin buys one share of Mink,Inc.,common stock for $100.On February 3 of the current year,the corporation makes a nontaxable distribution of one share of preferred stock to all holders of record of common stock.On the distribution date,the common stock is trading at $250 and the preferred stock is trading at $50.After the distribution,Kevin's bases in the two shares of stock are:
$\begin{array}{lr}&\text { Common } & \text { Freferred } \\\text { a. } &\$ 50.00 & \$ 50.00 \\\text { b. }& \$ 100.00 & \$-0- \\\text { c. } &\$ 83.33 & \$ 16.67 \\\text { d. } &\$ 250.00 & \$ 50.00 \\\text { e. } &\$ 80.00 & \$ 20.00\end{array}$