Required information

Problem $18-51($LO $18-3)($Static$)$

$[$The following information applies to the questions displayed below.$]$

Badger Corporation declared a stock distribution to all shareholders of record on March $25$ of this year. Shareholders will

receive one share of Badger stock for each $10$ shares of stock they already own. Madison owns $1,000$ shares of Badger

stock with a tax basis of $$100$ per share. The fair market value of the Badger stock was $$110$ per share on March $25$ of this

year.

Note: Leave no answer blank. Enter zero if applicable.

Problem $18-51$ Part c $($Static$)$

c$.$ How would you answer parts $($a$)$ and $($b$)$ if Badger offered shareholders a choice between receiving one additional share of Badger

stock for every $10$ Badger shares held or receiving $$120$ cash in lieu of an additional share of stock?