Dan Drew owned two shares of a corporation's common stock. He paid $60 for one share and $30 for the other share. fte corporation declared a stock dividend which gave stockholders two new shares of common stock for each share they held. After the distribution, Dan owns six shares of stock with an adjusted basis of $15 each.

Question

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the re are two lots of stock and a basis is determined for each.

Dan Drew Owned Two Shares of a Corporation's Common Stock