Jenny Purchased 1,000 Shares of Hewlett Corporation Preferred Stock for $66,000

Multiple Choice

Jenny purchased 1,000 shares of Hewlett Corporation preferred stock for $66,000 two years ago. During the current year, Jenny receives a 10% nontaxable stock dividend at a time when the stock has a fair market value of $40. What is Jenny's basis in the stock dividend shares?

A) $- 0 -
B) $6,000
C) $6,600
D) $8,000
E) $8,800