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Please help with calculating basis for both CS and PS, the answer CS: $66,666.67 and...

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Accounting

Please help with calculating basis for both CS and PS, the answer CS: $66,666.67 and PS: $44,444.44 is incorrect, I originally got those amounts when I solved and it was wrong. Thank you!

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Ramon and Sophie are the sole shareholders of Gull Corporation. Ramon and Sophie each have a basis of $100,000 in their 2,000 shares of Gull common stock. When its E \& P was $700,000, Gull Corporation issued a preferred stock dividend on the common shares of Ramon and stock with a par value of $100 per share. At the time of the stock dividend, fair market value of one share of common stock was $150 and fair market value of one share of preferred stock was $75. If an amount is zero, enter "0". a. What are the tax consequences of the distribution to Ramon and Sophie? Ramon and Sophie have, in the amount of $ What is the basis for the common stock and preferred stock for each shareholder? Common stock: $ Preferred stock

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