Test - Senior Tax Specialist Certification Test (2019) Investment Income Question 25 of 75. Alex purchased...

Question

Question

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

The stock dividend increases the number of shares outstanding but the stock price will fall by the rate of stock dividend.

In the given case 10% stock dividend has been given . Hence the stock price will get reduced by 10% giving us $ 1080.

Therefore option 1 is correct

Add a comment

Answer 2

Similar Homework Help Questions

Test - Senior Tax Specialist Certification Test (2019) Investment Income Question 25 of 75. Alex purchased...

Test - Senior Tax Specialist Certification Test (2019) Investment Income Question 25 of 75. Alex purchased 200 shares of ABC stock on June 2, 2017, for $1,200. In November 2018. ABC issued a 10% stock dividend. Alex now owns 220 shares and his basis is _ O $1,080 basis. O $1,200 basis. O $1,320 basis. $1,452 basis. Mark for follow up when a taxpayer fails to meet the holding requirement for statutor Question 26 of 75. The sale of stock...
alex purchased 200 shares of abc stock on june 2 dividend. AUX TUW O $1,080 basis....

alex purchased 200 shares of abc stock on june 2 dividend. AUX TUW O $1,080 basis. $1,200 basis. O $1,320 basis. O $1,452 basis. Mark for follow up _when a taxpayer fails to meet the holding requirement fo Question 26 of 75. The sale of stock is considered a(n)__ options. O Qualified sale O Ordinary disposition Nonqualified sale O Disqualifying disposition Mark for follow up Question 27 of 75. A taxpayer brings in a Form 1099-B showing $7,521 in net...
dividend. Alex now owns 220 Sharus dilu O $1,080 basis. $1,200 basis. $1,320 basis. $1,452 basis....

dividend. Alex now owns 220 Sharus dilu O $1,080 basis. $1,200 basis. $1,320 basis. $1,452 basis. O O Mark for follow up Question 26 of 75. The sale of stock is considered a(n) options. when a taxpayer fails to meet the holding requirement for sta O Qualified sale O Ordinary disposition Nonqualified sale O Disqualifying disposition Mark for follow up Question 27 of 75. A taxpayer brings in a Form 1099-B showing $7,521 in net proceeds from the May 20,...

dividend. Alex now owns 220 Sharus dilu O $1,080 basis. $1,200 basis. $1,320 basis. $1,452 basis....

dividend. Alex now owns 220 Sharus dilu O $1,080 basis. $1,200 basis. $1,320 basis. $1,452 basis. O O Mark for follow up Question 26 of 75. The sale of stock is considered a(n) options. when a taxpayer fails to meet the holding requirement for sta O Qualified sale O Ordinary disposition Nonqualified sale O Disqualifying disposition Mark for follow up Question 27 of 75. A taxpayer brings in a Form 1099-B showing $7,521 in net proceeds from the May 20,...
Alex purchased 200 shares of ABC stock on June 2nd 2017, for $1,200. And November 2018,...

Alex purchased 200 shares of ABC stock on June 2nd 2017, for $1,200. And November 2018, ABC issued a 10% stock dividend. Alex now owns 220 shares and his bases is EXCEPT Royalty inoome Taseemp inome Original sse discnunt Ordinary dhvidend inonme Mark for oow Queetion 27 of 76 Alex purchased 200 shares of ABC atock on June 2, 2017, for $1,200. In November 2018, ABC issued a 10% stock dividend. Alex now owns 220 shares and his basis is...
Jax purchased 200 shares of ABC stock on June 2, 2018, for $1,200. In November 2019,...

Jax purchased 200 shares of ABC stock on June 2, 2018, for $1,200. In November 2019, ABC issued a 10% stock dividend. Jax now owns 220 shares and his basis is __________. $1,080 $1,200 $1,320 $1,452

Test - Senior Tax Analyst Certification Test (2020 Tax Specialist, Senior Tax Specialist, Tax Analyst Question...

Test - Senior Tax Analyst Certification Test (2020 Tax Specialist, Senior Tax Specialist, Tax Analyst Question 1 of 75. Income from property rented through online platforms will generally fall into one of three categories. Each of the following is a classification for tax reporting for rental income purposes EXCEPT: Schedule C Schedule D. Schedule E The rental is not taxable.
Test - Senior Tax Analyst Certification Test (2020) Exempt Organizations Question 9 of 75. Which of...

Test - Senior Tax Analyst Certification Test (2020) Exempt Organizations Question 9 of 75. Which of the following is an example of an unrelated business activity for an exempt organization? Allare qualified as tax-exempt organizations under IRC 501(c)(3). Let's Read Together, Inc, a literacy program run by volunteers, conducts a bake sale every month Charity Local Clinic, Inc, a small medical facility located in a rural area, has a small cafeteria for the benefit of the medical personel and patients....
No taxable income is recognized from cancellation of debt when the? Test - Senior Tax Specialist...

No taxable income is recognized from cancellation of debt when the? Test - Senior Tax Specialist Certificati Cancellation of Debt Question 1 of 75. No taxable income is recognized from cancellation of debt when the O Taxpayer was solvent prior to the cancellation of debt. O Debt canceled was recourse debt. O Canceled debt was for the taxpayer's second home. O Cancellation of debt was intended as a gift. Mark for follow up

when a taxpayer fails to meet the holding requirement for statutory stock Question 26 of 75....

when a taxpayer fails to meet the holding requirement for statutory stock Question 26 of 75. The sale of stock is considered a(n) options. O Qualified sale O Ordinary disposition O Nonqualified sale O Disqualifying disposition Mark for follow up Question 27 of 75. A taxpayer brings in a Form 1099-B showing $7,521 in net proceeds from the May 20, 2018, sale of non-covered Share What are all of the other items you need to know to report the transaction?...

Test - Senior Tax Specialist Certification Test (2019) Investment Income Question 25 of 75. Alex purchased...

Homework Answers