Five Years Ago, Angie Purchased 1,000 Shares of Common Stock

Five years ago, Angie purchased 1,000 shares of common stock in Brussels Corporation for $60,000.In the current year, Angie receives a nontaxable stock dividend of 50 shares of Brussels preferred.Total values at the time of the dividend are: $40,000 for the preferred and $80,000 for the common.Based on this information, Angie's basis is

A) $80,000 in the common and $40,000 in the preferred.
B) $20,000 in the common and $40,000 in the preferred.
C) $40,000 in the common and $20,000 in the preferred.
D) $51,000 in the common and $9,000 in the preferred.
E) None of the above.