If a Nontaxable Stock Dividend Is Received and Is Not

If a nontaxable stock dividend is received and is not the same type of stock as that owned before the dividend, the original stock's basis is allocated to all shares

A) based on relative fair market values at the time of the stock dividend.
B) equally to all shares owned after the stock dividend.
C) based on the par value of the stock.
D) None of the above.