Naomi owns 1,000 shares of Nordstrom Corp. common stock which she purchased for $44800 and later receives a nontaxable preferred stock dividend of 200 shares of Nordstrom preferred stock when the FMV of the preferred was $70 per share and the FMV of the common was $56 per share. What is the basis of the preferred shares after the dividend?
Naomi owns 1,000 shares of Nordstrom Corp. common stock which she purchased for $44800 and later receives a nontaxable preferred stock dividend of 200 shares of Nordstrom preferred stock when the FMV of the preferred was $70 per share and the FMV of the common was $56 per share. What is the basis of the preferred shares after the dividend?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Naomi owns 1,000 shares of
Nordstrom Corp. common stock
which she purchased for $44800
and later receives a nontaxable
preferred stock dividend of 200
shares of Nordstrom preferred
stock when the FMV of the
preferred was $70 per share and
the FMV of the common was $56
per share. What is the basis of the
preferred shares after the
dividend?
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