On December 1, 2023, Bigham Corporation pays a dividend of $4.00 on each share of its common stock. Vanessa and Gena, two unrelated shareholders, each own 5,000 shares of the stock. Vanessa has owned her stock for two years while Gena purchased her stock on November 3, 2023. On December 15, 2023, both Vanessa and Gena sold all of their Bigham stock after Bigham announced it would be restating its earnings for the prior two years. How does each shareholder treat the $20,000 dividend from Bigham?

Answer rating: 100% (QA)

The treatment of the 20000 dividend from Bigham Corporation will differ for Vanessa and Gena due to ... View the full answer