On January 6, 2012, Sally Strom Purchased 300 Shares of Common

Multiple Choice

On January 6, 2012, Sally Strom purchased 300 shares of common stock in Corporation XYZ for $120 per share. Four months later she purchased 100 additional shares at $180 per share. On December 13, 2012, Sally received a 20 percent nontaxable stock dividend. What is Sally's basis in each share of stock after the stock dividend?

A) 480 shares at $112.50 per share
B) 360 shares at $120 per share and 120 shares at $180 per share
C) 360 shares at $120 per share and 120 shares at $150 per share
D) 360 shares at $100 per share and 120 shares at $150 per share