During 2009, John Johnson purchased 50 shares of common stock in Corporation DEF for $4,500. In 2015, DEE declared a stock dividend of 20 percent. The new stock received by John in the stock dividend was identical to the old stock. In 2019, DEF’s stock split 3 for 1 at a time when the fair market value was $120 per share. What is John’s basis in each of his shares of DEF’s stock if both distributions were nontaxable?

a. $120 per share

b. $90 for 50 shares and zero for all additional shares

c. $75 for 60 shares and $142.50 for 120 shares

d. $25 per share