Geraldine works for a corporation with a dividend reinvestment plan. In lieu of dividends, ...

60.1K

Verified Solution

Question

Accounting

Geraldine works for a corporation with a
dividend reinvestment plan. In lieu of dividends,
Geraldine, who currently owns 1,500 shares of
stock, bought 100 additional shares of stock at
$2 a share and paid a service charge of $4.75.
The FMV of the stock was $12. The service
charge was deducted from the dividends prior
to the purchase of the stock. What must she
report on her tax return as dividend income?
A. $200
B. $1,200
C. $1,204.75
D. $1,195.25
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students