Donna owns 800 shares of common stock in Macaw Corporation (adjusted basis of $40,000). She receives a

Question:

Donna owns 800 shares of in Macaw (adjusted basis of $40,000). She receives a 5% stock when the stock is selling for $60 per share.
a. How much gross income must Donna recognize because of the stock What is Donna's basis for her 840 shares of stock?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...