In Year 1, Lilly purchased 100 shares of Collins stock for $18,000 ($180 per share). In...
In Year 1, Lilly purchased 100 shares of Collins stock for $18,000 ($180 per share). In Year 2, the corporation declared a 50 percent stock dividend and Lilly received 50 new shares. What was Lilly’s basis after the stock dividend?
Homework Answers
| Statement showing Computations | |
| Particulars | Amount |
| Original Shares | 100.00 |
| Stock dividend = 100*50% | 50.00 |
| New shares 100 + 50 | 150.00 |
| Value per share | 180.00 |
| Lilly’s basis after the stock dividend = 180 *150 | 27,000.00 |
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