Doug Doolittle Receives a Nontaxable Stock Dividend of 20 Shares

Multiple Choice

Doug Doolittle receives a nontaxable stock dividend of 20 shares of Edwards Corporation common stock with a fair market value at distribution of $800. Doug previously owned 100 shares of Edwards Corporation common stock which he purchased three years ago for $6,000. fte basis per share of the 20 shares of Edwards Corporation stock is:

A) $0
B) $40
C) $50
D) $60