With Regard to Stock Dividends, All of the Following Statements

With regard to stock dividends, all of the following statements are correct except:

A) Stock dividends are distributions made by a corporation of its own stock.
B) In computing basis for new stock received as a result of a non-taxable dividend, it is immaterial whether the stock received is identical or not to the old stock.
C) If a stock dividend is taxable, the basis of the old stock does not change.
D) If a stock dividend is not taxable, a division must be made in the basis between the old and new stock.