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Harry purchased one share of common stock in a computer company for $90. Shortly after he purchased it, the corporation distributed two new shares of common stock for each share held. What is his basis for each of the three shares of common stock?
1) $90
2) $180
3) $30
4) $0
In this way we could combine the recording and posting process into one step and save ourselves a lot of time. What do you think?
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