Question: On October 1 , 2 0 2 4 , Brileigh, a cash basis taxpayer, gave Ramos common stock that paid a dividend of $ 1

On October 1,2024, Brileigh, a cash basis taxpayer, gave Ramos common stock that paid a dividend of $1,000 on December 15,2024. On November 15,2024, the corporation declared the dividend payable to shareholders of record as of November 22,2024. The corporation has paid the $1,000 dividend once each year for the past 10 years, during which Brileigh owned the stock. When Ramos collects the dividend on December 15,2024:
a. Ramos must include all the dividend in gross income.
b. Brileigh must report $750 of dividend income, and Ramos must report $250 of dividend income.
c. Brileigh must include all the dividend in gross income.
d. Brileigh must report $250 of dividend income, and Ramos must report $750 of dividend income.
e. Neither Brileigh nor Ramos must report dividend income

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