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 nontaxable 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.
The correct answer has not yet been found for the question. Our moderators are looking for the most suitable solutions for you. Could you share your comments with us for the answer to this question?