Identify the tax issue or issues suggested by the following situations and state each issue in the

Question:

Identify the tax issue or issues suggested by the following situations and state each issue in the form of a question.
At the beginning of the year, Ms. A owned 2,900 shares of SBS stock with a basis of $32 per share. SBS paid a 50 percent stock and Ms. A received 1,450 additional SBS shares. Before this the market price per share was $90. After the the price fell to $65.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...