Hoosier Corporation declared a 2 for 1 stock split to all shareholders of record on March 25 of this year Hoosier reported current E P of $600,000 and accumulated E P of $3,000,000 The total fair market value of the stock distributed was $1,500,000 Barbara Bloomington owned 1,000 shares of Hoosier stock with a tax basis of $100 per share a What amount of taxable dividend income, if any, does Barbara recognize this year Assume the fair market value of the stock was $150 per share on March 25 of this year b What is Barbara 's income tax basis in the new and existing stock she owns in Hoosier Corporation, assuming the distribution is tax free c How does the stock dividend affect Hoosier 's accumulated E P at the beginning of next year

Question: Hoosier Corporation declared a 2-for-1 stock split to all shareholders of record on March 25 of this year. Hoosier reported current E&P of $600,000 and

Hoosier declared a 2-for-1 stock split to all shareholders of record on March 25 of this year. Hoosier reported current E&P of $600,000 and accumulated E&P of $3,000,000. The total fair market value of the stock distributed was $1,500,000. Barbara Bloomington owned 1,000 shares of Hoosier stock with a tax basis of $100 per share.
a. What amount of taxable income, if any, does Barbara recognize this year? Assume the fair market value of the stock was $150 per share on March 25 of this year.
b. What is Barbara's income tax basis in the new and existing stock she owns in Hoosier assuming the is tax-free?
c. How does the stock affect Hoosier's accumulated E&P at the beginning of next year?

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