The basis of the property received as a dividend by a shareholder of a corporation is:
A. The book value at the date of distribution.
B. The original cost at the date of purchase.
C. The accounting value at the date of distribution.
D. The fair market value at the date of distribution.
Answer:D
The basis of the property received as a dividend by a shareholder of a corporation is:
A. The book value at the date of distribution. B. The original cost at the date of purchase. C. The accounting value at the date of distribution. D. The fair market value at the date of distribution.