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Seth owns 150 shares of stock with a basis of 1800 at 12 per share. The...

Seth owns 150 shares of stock with a basis of 1800 at 12 per share. The stock splits three for one. How many shares does he now own and what is his basis per share
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Answer #1

a. Number of Shares after split = Current Shares * Split Number per Share

Number of Shares after split = 150 * 3

Number of Shares after split = 450 Shares

b. Basis per Share = Total Basis / Number of Shares

Basis per Share = 1800 / 450 shares

Basis per Share = $4 per Share

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