What is perry basis per share


Jack Corporation declared a stock dividend to all common stock shareholders of record on December 31, 2010. Shareholders will receive 1 share of Jack common stock for each 5 shares of common stock they already own. Perry own 500 shares of Jack common stock with a tax basis of $120 per share. The fair market value of the Jack common stock was $80 per share on December 31, 2012. What is Perry's basis (per share) in his new and existing Jack common stock, assume the distribution is non-taxable?

A. $0

B. $80

C. $100

D. $120

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Accounting Basics: What is perry basis per share
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