Reggie owned stock in a corporation that has a dividend reinvestment plan. Reggie chose to participate in the plan and, during the year, the corporation paid dividends. The plan allowed Reggie to use the $3,000 dividend to buy 50 additional shares of stock at $60 per share when the fair market value of the stock was $72 per share. How much dividend income must Reggie report on his income tax return?
Reggie owned stock in a corporation that has a dividend reinvestment plan. Reggie chose to participate in the plan and, during the year, the corporation paid dividends. The plan allowed Reggie to use the $3,000 dividend to buy 50 additional shares of stock at $60 per share when the fair market value of the stock was $72 per share. How much dividend income must Reggie report on his income tax return?
Chapter22: S Corporations
Section: Chapter Questions
Problem 52P
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![Reggie owned stock in a corporation that has a dividend reinvestment plan. Reggie chose to participate in the plan and, during the year, the corporation paid dividends. The
plan allowed Reggie to use the $3,000 dividend to buy 50 additional shares of stock at $60 per share when the fair market value of the stock was $72 per share. How much
dividend income must Reggie report on his income tax return?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1976164a-1649-4d85-ad8c-b9009a9cc840%2F5812b0b1-dfe5-489f-9bd5-9c9a6e540747%2F4bpjrzn_processed.png&w=3840&q=75)
Transcribed Image Text:Reggie owned stock in a corporation that has a dividend reinvestment plan. Reggie chose to participate in the plan and, during the year, the corporation paid dividends. The
plan allowed Reggie to use the $3,000 dividend to buy 50 additional shares of stock at $60 per share when the fair market value of the stock was $72 per share. How much
dividend income must Reggie report on his income tax return?
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