14. Stock Dividends. (Obj. 1) In 1999, Patrick paid $1,200 for 100 shares of UPI common stock. In the current year, ÚPI offers Patrick the choice between a $50 cash dividend or 8 additional shares of common stock valued at $9 a share. Patrick opts for the stock dividend. podods bloss a. What is Patrick's basis in each of the 108 shares he now owns? joday ibon the sit b. How would your answer to Part a. change if Patrick did not have the option of a cash dividend?

14. Stock Dividends. (Obj. 1) In 1999, Patrick paid $1,200 for 100 shares of UPI common stock. In the current year, ÚPI offers Patrick the choice between a $50 cash dividend or 8 additional shares of common stock valued at $9 a share. Patrick opts for the stock dividend. podods bloss a. What is Patrick's basis in each of the 108 shares he now owns? joday ibon the sit b. How would your answer to Part a. change if Patrick did not have the option of a cash dividend?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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