! Required information [The following information applies to the questions displayed below.] Badger Corporation declared a stock distribution to all shareholders of record on March 25 of this year. Shareholders will receive one share of Badger stock for each 10 shares of stock they already own. Madison owns 1,000 shares of Badger stock with a tax basis of $100 per share. The fair market value of the Badger stock was $110 per share on March 25 of this year. Note: Leave no answer blank. Enter zero if applicable. b. What is the tax basis in Madison's new and existing stock in Badger Corporation, assuming the distribution is nontaxable? Note: Round your answer to the nearest whole number. Income tax basis per share $ 91
! Required information [The following information applies to the questions displayed below.] Badger Corporation declared a stock distribution to all shareholders of record on March 25 of this year. Shareholders will receive one share of Badger stock for each 10 shares of stock they already own. Madison owns 1,000 shares of Badger stock with a tax basis of $100 per share. The fair market value of the Badger stock was $110 per share on March 25 of this year. Note: Leave no answer blank. Enter zero if applicable. b. What is the tax basis in Madison's new and existing stock in Badger Corporation, assuming the distribution is nontaxable? Note: Round your answer to the nearest whole number. Income tax basis per share $ 91
Chapter22: S Corporations
Section: Chapter Questions
Problem 36P
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![!
Required information
[The following information applies to the questions displayed below.]
Badger Corporation declared a stock distribution to all shareholders of record on March 25 of this year. Shareholders will
receive one share of Badger stock for each 10 shares of stock they already own. Madison owns 1,000 shares of Badger
stock with a tax basis of $100 per share. The fair market value of the Badger stock was $110 per share on March 25 of this
year.
Note: Leave no answer blank. Enter zero if applicable.
b. What is the tax basis in Madison's new and existing stock in Badger Corporation, assuming the distribution is nontaxable?
Note: Round your answer to the nearest whole number.
Income tax basis per share
$
91](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F203702db-8ee2-41ef-8f23-4af077c093ec%2Fef842118-fdca-4b3c-b7e4-16bba49ef948%2F1bqk3u_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Badger Corporation declared a stock distribution to all shareholders of record on March 25 of this year. Shareholders will
receive one share of Badger stock for each 10 shares of stock they already own. Madison owns 1,000 shares of Badger
stock with a tax basis of $100 per share. The fair market value of the Badger stock was $110 per share on March 25 of this
year.
Note: Leave no answer blank. Enter zero if applicable.
b. What is the tax basis in Madison's new and existing stock in Badger Corporation, assuming the distribution is nontaxable?
Note: Round your answer to the nearest whole number.
Income tax basis per share
$
91
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