Naomi owns 1,000 shares of Nordstrom Corp. common stock which she purchased for $40,000 and later receives

Question:

Naomi owns 1,000 shares of Nordstrom Corp. common stock which she purchased for $40,000 and later receives a nontaxable preferred stock dividend of 200 shares of Nordstrom preferred stock when the FMV of the preferred was $75 per share and the FMV of the common was $60 per share. What is the basis of the common and preferred shares after the dividend?

Fantastic news! We've Found the answer you've been seeking!