In January 2020, Judd Harrison decides to sell 100 shares in the Widget Company. Since April 2019, no stock dividends had been paid by the company. On the date the stock is sold the market price is $12 a share. What is the basis per share that Judd must use in computing any gains or losses? (Refers back to Problem 27.)

 Problem 27.

Judd Harrison owns 200 shares of stock in the Widget Company for which he paid $1,600 in 1999. The board of directors of the company decided to pay a 10 percent stock dividend in April 2019, for which Judd received 20 shares of stock. Was this a taxable stock dividend? Explain.