What is george tax basis for his preferred stock

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Question - George purchased 100 shares of Gruber, inc. common stock for $30,000 two years ago. During the current tax year, George received a nontaxable preferred stock dividend of 50 shares. George`s preferred stock had a fair market value of $4,000, and the common stock, on which the preferred stock was distributed, had a fair market value of $16,000 on the date of distribution. What is George's tax basis for his preferred stock?

Reference no: EM131912541

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