Stuart owns 300 shares of Turquoise Corporation stock and 2,000 shares of Blue Corporation stock.During the year,Stuart received 150 shares of Turquoise as a result of a 1 for 2 stock split.The value of the shares received was $2,400.Stuart also received 100 shares of Blue Corporation stock as a result of a 5% stock dividend.Stuart did not have the option of receiving cash from Blue.The additional shares he received had a value of $3,600.Stuart's gross income from the receipt of the additional Turquoise and Blue shares is:

Question

Quizplus · Accepted Answer

Stock splits and stock dividends are generally not taxable events, so Stuart's gross income from the receipt of additional shares is $0.

Stuart Owns 300 Shares of Turquoise Corporation Stock and 2,000