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Heather owns 400 shares of Diego Corporation common stock for which she paid $4,000. She...

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Accounting

Heather owns 400 shares of Diego Corporation common stock for which she paid $4,000. She receives a nontaxable stock dividend of 20 shares of preferred stock on her common stock. The fair market values on the date of distribution of the preferred stock dividend are $20 a share for common stock and $100 a share for preferred stock. What is Heathers basis in the common and preferred shares?

Heather's basis for the common stock is $ ________ and $ ________ for the preferred stock.

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