Emerald, a cash-method calendar year single individual, is an experienced and savvy investor. She owns shares of stock in several companies and as a rule, only invests in businesses that have a consistent pattern of paying cash dividends.

Opal, Ltd. was experiencing some financial difficulties and only paid a small dividend during the first quarter of 2019. With respect to her investment in DiamondCo, Inc., Emerald's May 15 purchase date was only seventeen (17) days before the stock's Ex-Dividend date of June 1, 2019. You can assume all shares in the table above represent common stock interests in the applicable companies and that Emerald has not engaged in any related transactions designed to limit her risk of loss (e.g. no short sales or similar hedges).Primary Issue: Are the dividends received by Emerald Qualified or Non-Qualified? Hint: Start with IRC §1(h)(11). Also, review IRS Notice 2003-71, I.R.B. 2003-43, 922 and IRS News Release IR-2004-22