Chloe owns 200 shares of TPP stock that she purchased 10 years ago for $1,500.Five years ago, there was a 3 for 2 stock split and she received 100 additional shares.This year, there was another 3 for 2 stock split and she received 150 additional shares.If the stock is currently selling for $10 per share, how much income does she recognize and what is her basis in these last 150 shares?
A)$3,000 income; $3,000 basis
B)$3,000 income, $1,125 basis
C)0 income; $1,125 basis
D)0 income; $500 basis

Question

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The Answer of Chloe owns 200 shares of TPP stock that she purchased 10 years ago for $1,500.Five years ago, there was a 3 for 2 stock split and she received 100 additional shares.This year, there was another 3 for 2 stock split and she received 150 additional shares.If the stock is currently selling for $10 per share, how much income does she recognize and what is her basis in these last 150 shares?
A)$3,000 income; $3,000 basis
B)$3,000 income, $1,125 basis
C)0 income; $1,125 basis
D)0 income; $500 basis

Chloe Owns 200 Shares of TPP Stock That She Purchased