Amy Received Nontaxable Stock Rights on February 3,2010

Multiple Choice

Amy received nontaxable stock rights on February 3,2010.She allocated $8,000 of the $30,000 basis for the associated stock to the stock rights.The stock rights are exercised on October 2,2010.The exercise price for the stock is $25,000.What is the taxpayer's basis for the acquired stock?

A) $0.
B) $25,000.
C) $33,000.
D) $55,000.
E) None of the above.